PENGARUH GOOD CORPORATE GOVERNANCE DAN PENGUNGKAPAN TANGGUNG JAWAB SOSIAL PERUSAHAAN TERHADAP KINERJA KEUANGAN

Abstract

This research aimed to examine the effect of good corporate governance and implementation of corporate social responsibility on the financial performance. The population was State-Owned enterprises (BUMN) which were listed on Indonesia Stock Exchange (IDX) 2014-2017, while the data collection technique used purposive sampling. The data analysis technique used multiple linear regression with SPSS 23. The research result concluded independent commisisioner did not affect the financial performance, because supervisor activity which had been done by the independent commisioner was not enough to increase the financial performance. The institutional ownership had positive effect on the financial performance, because the institutional ownership was able to determine the supervisor to have optimal performance. The managerial ownership had positive effect on the financial performance, because the managerial ownership involved the management to have the decision making and able to determine the supervisor to monitor directly. The audit committee had positive effect on the financial performance, because the audit committee was able to manage their credibility in preparing the statement to conduct the optimal supervision. Implementation of corporate social responsibility did not affect the financial performance, because implementation of corporate social responsibility was not able to give any good contribution to increase the financial performance.
Keywords: good corporate governance, corporate social responsibility, financial performance.