PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERBANKAN MENURUT CORPORATE GOVERNANCE PERCEPTION INDEX (CGPI)

Abstract

This study aims to determine the effect of good corporate governance to financial performance. Good corporate governance as measured by CGPI (Corporate Governance Perception Index) based on the rating that has been prepared by IICG (Indonesian Institute of Corporate Governance) and the Financial Performance is measured by Profit Margin, Turnover Assets, Return On Investment. The statistical method used is simple linear regression analysis. Sample of research is corporate banking sector followed a survey conducted by IICG years 2005-2008 and included in the rating CGPI.Based on the results of hypothesis testing can be concluded that the GCG influence on the Prime Minister and ROI in the year 2007, while the Prime Minister and ROI in the years 2005, 2006, in 2008 and TOA in the year 2005 to 2008 had no effect due to the low awareness of issuers in implementing GCG. Company management is not interested in long-term benefit of GCG implementation so that they feel they can walk without GCG.