THE STUDY OF EFFECT OF GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE

Abstract

Increasingly rapid economic development requires all companies to be more sensitive in reading situations and conditions both viewed from the internal and external sides of the company. The survival of a company depends on its corporate governance. This study aims to prove the significance of the effect of good corporate governance on financial performance in Regional Development Banks. The population in this study is all Regional Development Banks in Indonesia, which are 26 Banks. The method in determining the sample in this study used saturated samples. The data in the study are secondary data. The data analysis technique used is Simple Linear Regression. The results of this study found that corporate governance has a positive effect on the performance of Regional Development Banks. This study can provide information to consider the application of good corporate governance to the financial performance of Regional Development Banks. Regional development banks are still able to maintain financial performance standards that have been signaled by Bank Indonesia.

Keywords

• Good corporate governance
• bank performance
• ROA