PENGARUH MEKANISME CORPORATE GOVERNANCE DAN LEVERAGE TERHADAP KINERJA KEUANGAN

Abstract

This research aimed to examine the effect of corporate governance mechanism and leverage on financial performance. While. The population was 44 banking companies which were listed on Indonesia Stock Exchange during 2014-2018. Moreover, the corporate governance mechanism was refered to independent commissioner, board of director and managerial ownership. Meanwhile, leverage was measured by Debt to Equity Ratio (DER) and Time Interest Earned (TIE). The research was quantitative. Furthermore, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 140 samples of companies’ financial statement from 22 banking companies. Additionally, the analysis technique used multiple linear regression with SPSS 23. The research result concluded board of director and Time Interest Earned had positive effect on financial performance of banking companies. On the other hand, independent commissioner, managerial pwnership and Debt to Equity Ratio did not affect financial performance of banking companies.
Keywords: financial performance, corporate governance, leverage.