The Role Of Corporate Governance In Firm Performance

• Main Authors: Zahroh Naimah, Dr.,SE.,MSi.,Ak, Hamidah, Dr.,Dra.,M.Si.,Ak
• Format: Conference or Workshop Item PeerReviewed
• Language: English; Indonesian
• Published: 2016
• Subjects: HJ9701-9940 Public accounting. Auditing; HM1176-1281 Social influence. Social pressure; QP1-345 General Including influence of the environment
• Online Access: http://repository.unair.ac.id/65812/1/Zahroh%20Naimah_Karya%20Ilmiah006.pdf; http://repository.unair.ac.id/65812/2/Zahroh%20Naimah_Peer%20Review006.pdf; http://repository.unair.ac.id/65812/; https://www.shs-conferences.org/articles/shsconf/abs/2017/02/contents/contents.html
• Institution: Universitas Airlangga

The objective of this study is to examine the role of corporate governance to increase firm performance. The measure of corporate governance are corporate governance mechanism and Corporate Governance Perception Index (CGPI). Samples are companies that followed CGPI award at 2005-2014. The examination of the relationship of corporate governance and firm performance is conducted by regression of corporate governance mechanism variables and control variables to profitability. Corporate governance mechanisms are board size, board independence, outside directors, audit committee size, audit committee meeting, audit quality, and CGPI. Control variables are leverage and firm size. The results of this study indicate that board independence negatively influence profitability, audit committee meeting positively influence profitability, audit quality positively influence profitability, CGPI positively influence profitability, leverage negatively influence profitability, and firm size negatively influence profitability.