PENGARUH GOOD CORPORATE GOVERNANCE, LEVERAGE, DAN LIKUIDITAS TERHADAP PROFITABILITAS

Abstract

This research examines and analyzes the effect of Good Corporate Governance, leverage, and liquidity on profitability. Good Corporate Governance was measured by an independent commissioner board, leverage was measured by Debt to Assets Ratio (DER), liquidity was measured by Loan to Debt Ratio (LDR), and profitability was measured by Return On Asset (ROA). The research applies quantitatively. Furthermore, the population consists of banking companies that belong to the 15 Infobank Stock Index listed on the Indonesia Stock Exchange (IDX). The data collection technique used was saturated sampling, in which all members of the population were the sample. In line with that, there were 15 banking companies as samples. Moreover, the data were taken for 3 years (2021-2023) with 45 total data samples. However, there was 1 data outlier. So, 44 data samples were analyzed. Additionally, the data analysis technique used multiple linear regression with SPSS 25 version. The result concludes that GCG (Independent Commissioner Board) has a significant effect on profitability. Likewise, leverage (DER) has a significant effect on profitability. However, liquidity (LDR) does not affect profitability.