PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PERUSAHAAN MANUFAKTUR DI BEI

Abstract

This research aimed to examine and find out the effect of Good Corporate Governance (GCG) disclosure on profitability of Property and Real Estate manufacturing companies which were listed on Indonesia Stock Exchange. While GCG was examined by independent commissioner council, audit committee, managerial and institutional ownership. Meanwhile, profitability was measured by Return On Asset. The research was quantitative with purposive sampling as data collection technique, in which the sample was based on criteria given. Moreover, there were 66 samples from 22 companies 2018-2020. Furthermore, the data analysis technique used multiple linear regression. The research result concluded as follows: 1. Independent Commissioner Board had a negative and significant effect on profitability. It happened since the higher the proportion of independent commissioner board could not guarantee the increase of company’s profitability performance, 2) Audit Committee did not affect profitability, (3) Managerial Ownership did not affect profitability 4) Institutional Ownership did not affect profitability.
Keywords: good corporate governance, profitability, ROA