Art Original
Pengaruh Penerapan Good Corporate Governance Dan Ukuran Perusahaan Terhadap Kinerja Keuangan Perbankan Di Indonesia
The implementation of Good Corporate Governance (GCG) is an important factor in enhancing the financial performance of banks. Effective oversight and ownership structures are believed to influence a company's profitability. In addition, firm size also has the potential to impact financial performance. This study aims to examine the effect of GCG implementation, measured through managerial ownership, institutional ownership, and independent commissioners, as well as firm size, on the financial performance of banks in Indonesia, as measured by Return on Assets (ROA). This study utilizes panel data from 63 commercial banks registered with the Financial Services Authority (OJK) during the 2019–2023 period, using purposive sampling as the sample selection method. The analytical method employed is panel data regression with the assistance of EViews 12 software. The results show that managerial ownership and independent commissioners have no significant effect on ROA. Meanwhile, institutional ownership has a significant positive effect, and firm size has a significant negative effect on ROA. These findings indicate that oversight by institutional shareholders can enhance financial performance, while larger firms tend to have lower profitability.
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