Good Corporate Governance as Determinants of Financial Performance: A Study on Insurance Companies

Fitriani Saragih

Good Corporate Governance as Determinants of Financial Performance: A Study on Insurance Companies

Fitriani Saragih

Abstract

Good corporate governance (GCG) plays an important role in increasing the performance of a finance company. Research This aims to analyze the influence of GCG on the performance of a finance company insurance listed on the Indonesia Stock Exchange (IDX). GCG indicators used in the study include the Board of Commissioners' independence, the Size Audit Committee, the Ownership Institutional, and the Public Ownership. Financial performance is measured using Return On Assets (ROA). Research This uses a method with an associative approach, and uses a purposive sampling technique for the election sample. Secondary data was obtained from reports of annual company insurance listed on the IDX. Data analysis was carried out with multiple linear regression, classical assumption test, and hypothesis testing. The results of the study show that GCG is measured with the council independent commissioner, size audit committee, ownership institutional, and ownership public Good in a way partially and simultaneously influential and significant to the performance financial (ROA) in the company insurance listed on the IDX

Keywords

Good Corporate Governance, Financial Performance; Board of Commissioners; Independent; Audit Committee; Ownership Institutional; Public Ownership; ROA

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