The influence of Good Corporate Governance on the financial performance of State-Owned Enterprises listed on the Indonesia Stock Exchange

https://doi.org/10.35912/jomabs.v2i1.2507
Published: Nov 4, 2024

Abstract:

Purpose: This study aims to determine the effect of Good Corporate Governance on the Financial Performance of BUMN Companies listed on the Indonesia Stock Exchange in 2019-2023.

Methodology: This study used a quantitative approach. This study used 70 research samples. This study has two variables, namely: 4 independent variables (X1, X2, X3, and X4) and 1 (one) dependent variable. Institutional leadership (X1), board of directors (X2), board of commissioners (X3), and audit committee (X4) are independent variables, while financial performance (Y) is the dependent variable.

Results: Based on data analysis, it has been found that the answer to the hypothesis is that institutional ownership, board of directors, board of commissioners, and audit committee simultaneously and partially have a significant effect on financial performance in BUMN companies listed on the Indonesia Stock Exchange in 2019-2023.

Conclusion: Good corporate governance (CG) (institutional ownership, board of directors, board of commissioners, and audit committee) significantly affects the financial performance of state-owned enterprises on the Indonesia Stock Exchange (IDX) for the period 2019–2023. The effective implementation of GCG can increase ROA and company value.

Limitations: The independent variables in this study are limited to institutional ownership, board of directors, and audits. First,ee, and the dependent variable is financial performance (ROA). The research was conducted only on BUMN companies listed on the Indonesia Stock Exchange.

Contribution: Management is expected to pay more attention to Good Corporate Governance in the company in order to create good company value.

Keywords:
1. Audit Committee
2. Board of Commissioners
3. Board of Directors
4. Financial Performance (ROA)
5. Institutional Ownership
Authors:
1 . Maria Septijantini Alie
Mitra Indonesia University, Indonesia
2 . Egi Rodlia Fitri
Mitra Indonesia University, Indonesia
3 . Desmon Desmon
Mitra Indonesia University, Indonesia
4 . M. Nasir
Mitra Indonesia University, Indonesia
5 . Evi Meidasari
Mitra Indonesia University, Indonesia
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How to Cite
Alie, M. S. ., Fitri, E. R., Desmon, D., Nasir, M., & Meidasari, E. (2024). The influence of Good Corporate Governance on the financial performance of State-Owned Enterprises listed on the Indonesia Stock Exchange. Journal of Multidisciplinary Academic Business Studies, 2(1), 21–33. https://doi.org/10.35912/jomabs.v2i1.2507
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Issue & Section
Vol. 2 No. 1 (2024): November
Articles
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References

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    Sukandar, P. P., & Rahardja, R. (2014). Diponegoro Journal of Accounting, 7.

    Supriyanti, S. A., & Istikhoroh, S. (2021). Pengaruh praktik good corporate governance terhadap profitabilitas perusahaan bumn yang terdaftar di bursa efek indonesia. Journal of Sustainability Bussiness Research (JSBR), 2(4), 195-203. doi:https://doi.org/10.36456/jsbr.v2i4.4796

    Utami, D. H. P., & Muslih, M. (2018). Pengaruh Good corporate governance terhadap nilai perusahaan dengan kinerja keuangan sebagai variabel moderasi (studi kasus pada perusahaan sub sektor asuransi yang terdaftar di bursa efek Indonesia periode 2013-2016). Akrab Juara: Jurnal Ilmu-ilmu Sosial, 3(3), 111-125.

  1. Andiappan, M., & Dufour, L. (2020). Jealousy at Work: A Tripartite Model. Academy of management review, 45(1), 205-229. doi:https://doi.org/10.5465/amr.2016.0299
  2. Buallay, A., Hamdan, A., & Zureigat, Q. (2017). Corporate governance and firm performance: evidence from Saudi Arabia. Australasian Accounting, Business and Finance Journal, 11(1). doi:https://doi.org/10.14453/aabfj.v11i1.6
  3. Dao, B., & Nguyen, T. (2020). A meta-analysis of corporate governance and firm performance. Journal of Governance and Regulation, 9, 18-39. doi:http://dx.doi.org/10.22495/jgrv9i1art2
  4. Fadillah, A., Ridlo. (2017). Analisis pengaruh dewan komisaris independen, kepemilikan manajerial dan kepemilikan institusional terhadap kinerja perusahaan yang terdaftar di lq45. Jurnal Akuntansi. doi:https://doi.org/10.37058/jak.v12i1.294
  5. Fauzi, H., Mahoney, L., & Rahman, A. (2009). Institutional Ownership and Corporate Social Performance: Empirical Evidence From Indonesian Companies. Issues in Social and Environmental Accounting, 1. doi:http://dx.doi.org/10.22164/isea.v1i2.21
  6. Hasibuan, D., HM., & Sushanty, L. (2018). Pengaruh Good Corporate Governance Terhadap Kinerja Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia Pada Periode 2013- 2014. Jurnal Ilmiah Akuntansi Kesatuan. doi:https://doi.org/10.37641/jiakes.v6i1.60
  7. Husain, F. (2021). Pengaruh Rasio Likuiditas dan Rasio Profitabilitas terhadap Harga Saham Pada Perusahaan Indeks IDX-30. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 4(2), 162-175. doi:https://doi.org/10.31842/jurnalinobis.v4i2.175
  8. Islam, A. (2024). The Influence of Board of Directors, Board of Commissioners, and Independent Commissioners on Company Financial Performance. JPEK (Jurnal Pendidikan Ekonomi dan Kewirausahaan), 8. doi:http://dx.doi.org/10.29408/jpek.v8i2.25516
  9. Jacobus, G., Gamaliel, H., & Datu, C. (2023). Analysis of the Financial Performance of State-Owned Enterprises in the Infrastructure Sector Listed on the Indonesia Stock Exchange. Jurnal Ekonomi Dan Bisnis Digital, 2, 43-62. doi:http://dx.doi.org/10.55927/ministal.v2i1.2458
  10. Kasmir. (2014). Analisis Laporan Keuangan. Jakarta: PT. RajaGrafindo Persada.
  11. Liong, K. (2022). Analisis Penerapan Good Corporate Governance PT Bank Central Asia Tbk. Jurnal Studi Pemerintahan dan Akuntabilitas (Jastaka), 2(1), 1-28. doi:https://doi.org/10.35912/jastaka.v2i1.1668
  12. Luciana, E. A., & Pertiwi, D. (2024). Pengaruh Financial Knowledge dan Financial Attitude terhadap Financial Behavior Karyawan Bank dimediasi Self-confidence. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 7(4), 519-534. doi:https://doi.org/10.31842/jurnalinobis.v7i4.344
  13. Pillai, R., & Al-Malkawi, H.-A. N. (2018). On the relationship between corporate governance and firm performance: Evidence from GCC countries. Research in International Business and Finance, 44, 394-410. doi:https://doi.org/10.1016/j.ribaf.2017.07.110
  14. Pinontoan, A. E., Sutanto, M. G., Lesmana, M., & Meiden, C. (2022). Corporate Governance dan Audit Delay (Penelitian Beberapa Skripsi dan Jurnal, Meta Analisis). WACANA EKONOMI (Jurnal Ekonomi, Bisnis dan Akuntansi), 21(2), 119-132. doi:https://doi.org/10.22225/we.21.2.2022.119-132
  15. Rahmawati, A. (2017). Kinerja Keuangan dan Tingkat Pengembalian Saham: Studi pada Perusahaan Asuransi di Bursa Efek Indonesia. Esensi: Jurnal Bisnis dan Manajemen, 7(1), 1-14. doi:https://doi.org/10.15408/ess.v7i1.4724
  16. Renny, S., & Musfiari, H. (2019). Analisis Perbandingan Penerapan Good Corporate Governance Sebelum dan Sesudah Konversi pada Bank Aceh Syariah. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi Unsyiah, 4(4), 662-676. doi:https://doi.org/10.24815/jimeka.v4i4.15334
  17. Rinaldo, D., & Puspita, V. (2020). Independent Parties in Minimizing Agency Problem in Indonesia: An Alternative Model. HOLISTICA – Journal of Business and Public Administration, 11, 13-28. doi:http://dx.doi.org/10.2478/hjbpa-2020-0002
  18. Rusdi, D., Kartika, I., & Indriastuti, M. (2021). Toward Firm Performance in Indonesia: The Role of Good Corporate Governance and Investment Opportunity Set. Jurnal Economia, 17, 81-90. doi:http://dx.doi.org/10.21831/economia.v17i1.35562
  19. Sarafina, S., & Saifi, M. (2017). Pengaruh good corporate governance terhadap kinerja keuangan dan nilai perusahaan (Studi pada Badan Usaha Milik Negara (BUMN) yang terdaftar di Bursa Efek Indonesia periode 2012-2015). Brawijaya University.
  20. Saragi, D. R. R., Sianipar, L. L. R., & Samosir, A. T. (2024). Pengaruh Good Corporate Governance Dan Ukuran Perusahaan Terhadap Kinerja Keuangan. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 3(4), 1081-1087. doi:https://doi.org/10.56799/ekoma.v3i4.3445
  21. Sari, T., Hendra Titisari, K., & Nurlaela, S. (2020). Pengaruh Kepemilikan Manajerial, Komite Audit, Leverage dan Ukuran Perusahaan Terhadap Kinerja Keuangan. Upajiwa Dewantara, 4, 15-26. doi:http://dx.doi.org/10.26460/mmud.v4i1.6328
  22. Siburian, E., Trisnadewi, A. A., & Kawisana, P. (2024). The Influence of the Board of Commissioners, Board of Directors, Audit Committee, and Managerial Ownership on Financial Performance in Manufacturing Companies in 2020-2022. Journal of Economics, Finance And Management Studies, 07. doi:http://dx.doi.org/10.47191/jefms/v7-i9-60
  23. Sugiyono. (2013). Metode Penelitian Kuantitatif dan Kualitatif dan R&D. Bandung: CV Alfabeta.
  24. Sukandar, P. P., & Rahardja, R. (2014). Diponegoro Journal of Accounting, 7.
  25. Supriyanti, S. A., & Istikhoroh, S. (2021). Pengaruh praktik good corporate governance terhadap profitabilitas perusahaan bumn yang terdaftar di bursa efek indonesia. Journal of Sustainability Bussiness Research (JSBR), 2(4), 195-203. doi:https://doi.org/10.36456/jsbr.v2i4.4796
  26. Utami, D. H. P., & Muslih, M. (2018). Pengaruh Good corporate governance terhadap nilai perusahaan dengan kinerja keuangan sebagai variabel moderasi (studi kasus pada perusahaan sub sektor asuransi yang terdaftar di bursa efek Indonesia periode 2013-2016). Akrab Juara: Jurnal Ilmu-ilmu Sosial, 3(3), 111-125.