PENGARUH GOOD CORPORATE GOVERNANCE, LEVERAGE, DAN MODAL KERJA TERHADAP PROFITABILITAS

Abstract

This research aimed to examine the effect of Good Corporate Governance, Leverage, and Working Capital on Profitability. While Good Corporate Governance was measured by Board of Director, Independent Commissioner, and Audit Committee. Meanwhile, leverage was measured by Debt to Equity Ratio (DER) and Working Capital. Moreover, profitability was measured by Return On Asset (ROA). The research was quantitative with causal-comparatives as its approach. The approach was used to find out the cause-effect relationship among two variables or more. Furthermore, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with that, there were 147 research samples from 49 Goods Consumption industries which were listed on Indonesia Stock Exchange (IDX) during 2018-2020. Additionally, the data analysis technique used multiple linear regression with SPSS 26. The research result concluded that board of director had a positive but insignificant effect on profitability. On the other hand, independent commissioner had a negative and significant effect on profitability. In contrast, audit committee had a positive and significant effect on profitability. However, leverage had a negative and significant effect on profitability. In addition, working capital had a positive and significant effect on profitability.
Keywords: good corporate governance, leverage, working capital, profitability