Summary: The objective of this research is to know the influence of Good Corporate Governance (GCG) to the financial performance of the banking companies that listed in BEI. GCG application score was the variable that used as indicator of GCG. Operating Expenses to Operating Income (BOPO), Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM), Return on Assets (ROA) and Return on Equity (ROE) were the variables that used as the indicator of financial performance of the company.This research was an associative explanation research where the variables had causality characteristic. The samples of this research are banking companies that have implemented a good corporate governance structure and are included in the GCG’s ranking that was carried out by IICG (Indonesian Institute of Corporate Governance) of score CGPI (Corporate Governance Perception Index), which is selected by purposive sampling method. Pooling (data series and cross sectional) were used in this research and taken from 2006-2009. Hypothesis testing is performed by statistical methods using simple regression analysis.The result of this research showed that the structure of GCG in company do not affect the CAR, LDR, NIM, and ROA significantly as the company's financial performance, while at BOPO, and ROE are significantly affected as the company's financial performance.
Questions? LIVE CHAT