PENGARUH GOOD CORPORATE GOVERNANCE DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN

Abstract

This research aimed to examine the effect of managerial ownership, institutional ownership, independent commissioners’ board, audit committee, and firm size. The population was Ceramic and Porcelain companies listed on the IDX during 2017-2021. Moreover, the data were annual reports taken from the official website of IDX. The data collection technique used purposive sampling, with 7 companies as the sample during 5 years of observation. In total, there were 35 data samples. Furthermore, the research was correlational-quantitative. The data analysis technique used multiple linear regression. The managerial ownership was measured by calculating the number of managerial shares divided by the number of shares outstanding, institutional ownership was measured by calculating the number of institutional shares divided by the number of shares outstanding, the independent commissioners’ board was measured by counting the number of independent commissioners divided by the number of commissioners’ board member, the audit committee was measured by counting the number of audit committee members in the company, and the firm company was calculated with LN (total assets) and financial performance measured by Return On Assets. The result showed that managerial ownership did not affect financial performance. However, institutional ownership had a positive effect on financial performance. Likewise, independent commissionaires’ board had a positive effect on financial performance. In contrast, the audit committee did not affect financial performance. On the contrary, firm size had a negative effect on financial performance.