PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PERUSAHAAN

Abstract

This research aimed to examine the effect of Good Corporate Governance on campany’s profitability. While, Good
Corporate Governance was referred to independent director, independent commissioner and audit committee.
Meanwhile, company’s profitability was measured by Return On Asset. The research was quantitative.
Moreover, the population was 129 manufacturing companies, which were listed on Indonesia Stock Exchange
(IDX) during 2016-2018. Furthermore, the data collection technique used purposive sampling. In line with,
there were 387 samples. Additionally, the data analysis technique used multiple linear regression with SPSS
20.0. The research result concluded independent commisionaire had positive effect on company’s profitability of
manufacturing companies which were listed on Indonesia Stock Exchange (IDX, Likewise, audit committee had
positive effect on company’s profitability of manufacturing companies which were listed on Indonesia Stock
Exchange (IDX). On the other hand, independent director had negative effect on the company’s profitability of
manufacturing companies which were listed on Indonesia Stock Exchange (IDX).
Keywords: independent director, independent commissionaire, audit committee, company’s’ profitability