PENGARUH GCG DAN LEVERAGE TERHADAP KINERJA KEUANGAN DENGAN MANAJEMEN RISIKO SEBAGAI VARIABEL INTERVENING

Abstract

This research aimed to examine Good Corporate Governance which was referred to institutional ownership,
independent commissioner board and leverage on booking performance. While, the population was banking
companies which were listed on Indonesia Stock Exchange (IDX the 2014-2018). The data collection technique
used purposive sampling, in which the sample was based on criteria given. In line with, there were 36 banking
companies as sample. Moreover, the data analysis technique, with statistical, used descriptive statistics and path
analysis with SPSS and Sobel test. The research result concluded institutional ownership and independent
commissioner board did not affect risk management. In contrast, leverage had positive effect on risk
management. Meanwhile, institutional ownership as well as leverage did not affect financial performance. On
the other hand, independent commissioner board and risk management had negative and significant effect on
financial performance. In brief, all paths which connect GCG and leverage on financial performance through risk
management were not significant. Therefore, it could be concluded risk management was not able to intervene.
Keywords: good corporate governance, leverage, risk management, financial performance