Effect Of Good Corporate Governance Against Nonbanking Financial Companies Listed In BEI

Abstract

This study aims to analyze the influence of good corporate governance on the performance of non-banking financial companies listed on the Stock Exchange. Corporate governance is measured by the CGPI (Corporate Governance Perception Index) based on a ranking that has been prepared by IICG (The Indonesian Institute for Corporate Governance). Company's financial performance is measured by the value of Return on Assets, Return on Equity and Net Profit Margin. In this study using data 31 non-banking companies listed in the top 10 CGPI between the years 2006-2010. The methods used in sampling is purposive sampling. Variables used in the study, the dependent variable is measured by ROA, ROE and NPM, the independent variables in the form of the result of the CGPI, and variable control of the composition assets and size of company. Based on the results of hypothesis testing can be concluded that good corporate governance affects the value of the company's financial performance. This can be seen from the ANOVA test results that show the value p-value for each of the dependent variable is 0.029, 0.043 and 0.004 who were <0.05. The amount of the percentage impact is 20% for ROA, 17.5% for ROE and 31.7% for variable NPM.