Analysis of The Good Corporate Governance Effect on Profitability in Registered Manufacturing Companies in Indonesia Stock Exchange

  • Sutri Handayani Universitas Islam Lamongan
Keywords: good corporate government, board of commisioners, board of directors, audit committee, profitability, ROE

Abstract

This study aimed to find out the effect of Good Corporate Governance toward profitability of listed manufacturer companies in Indonesian stock exchange in 2012-2016 periods. The proxies of Good corporate governance are board of commissioners, board of directors, and audit committee. Moreover, the profitability is measured by Return On Equity (ROE). Population in this study were  registered manufacturer companies in Indonesian stock exchange in 2012-2016 periods. The sampling technique is purposive sampling method. Based on this method, it is obtained 29 companies. The type of data is secondary data. The data processing uses SPSS (Statistical Package for Social Science) v.20. The data analysis technique used multiple linear regressions. The result of this study showed  that partially, the Board of Commissioners and the Audit Committee have no significant effect on profitability while the Board of Directors has a significant influence on profitability. Simultaneously the Board of Commissioners, the Board of Directors, and the Audit Committee had a significant influence on profitability.

References

Aprianingsih, A., & Yushita, A. N. (2016). Pengaruh Penerapan Good Corporate Governance, Struktur Kepemilikan, Dan Ukuran Perusahaan Terhadap Kinerja Keuangan Perbankan.Jurnal Profita: Kajian Ilmu Akuntansi,4(4).

Desiana, L., MAWARDI, M., & GUSTIANA, S. (2016). Pengaruh Good Corporate Governance terhadap Profitabilitas (ROE) pada Bank Umum Syariah di Indonesia Periode 2010-2015.I-Finance: a Research Journal on Islamic Finance,2(2), 1-20.

Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program IMB SPSS 23,Edisi 8, semarang : UNDIP.

Hamdani. (2016) Good Corporate Governance Tinjauan Etikadalam Praktik Bisnis.Jakarta: Penerbit Mitra Wacana Media.

Putra, A.S. dan Nuzula, N.F.(2017).Pengaruh Corporate Governance terhadap Profitabilitas (Studi Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia Periode 2013-2015). Jurnal Administrasi Bisnis 47 (1),103-112.

Sugiyono. (2016). Metode Penelitian Kuantitatif, Kualitatif, Kombinasi (Mixed Methods). Bandung: Alfabeta.

Sulistyowati. (2017). Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Pada Perusahaan Perbankan. Jurnal Ilmu dan Riset Akuntansi Volume 6, Nomor 1.

Tjondro, David dan R Wilopo. (2011). Pengaruh Good Corporate Governance (GCG)Terhadap Profitabilitas Dan Kinerja Saham Perusahaan Perbankan Yang Tercatat DiBursa Efek Indonesia. Journal of Business and Banking Volume 1, No. 1, May 2011Wicaksono, Tangguh. 2014. “Pengaruh Good Corporate Governance TerhadapProfitabilitas Perusahaan”. Skripsi. Universitas Diponegoro.
Published
2019-04-02
How to Cite
Handayani, S. (2019, April 2). Analysis of The Good Corporate Governance Effect on Profitability in Registered Manufacturing Companies in Indonesia Stock Exchange. Journal of Economics, Business, and Government Challenges, 2(1), 39-48. https://doi.org/https://doi.org/10.33005/ebgc.v2i1.63