THE INFLUENCE OF GOOD CORPORATE GOVERNANCE MECHANISM TO BANK'S PERFORMANCE IN INDONESIA
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Date
2017-11-16Author
RESCHIWATI, RESCHIWATI
INDRASARI, ARUM
DAMAYANTI, IRMA
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The aim of this study is to examine empirically the influence of corporate governance mechanisms as employed by institutional ownership (INST), board of commissioner activity (MEET), board of director (DIR), proportion of independent commissioner board (INDEP) and audit committee (AUD) on bank’s performance in Indonesia as case research from 2012 until 2016. Financial performance of these banks is measured by ROA.
The research finds that audit committee (AUD has significantly influence on bank's performance, while the board of director size (DIR), the proportion of independent commissioner (INDEP), the ownership (INST) and the board of commissioner activity (MEET) shows insignificantly influence on bank’s performance. Finally, the research reveales that good corporate governance has indirect relationship to the performance as well as put corporate governance in place to enable success management of a bank in Indonesia in order to improve good performance.