The Effect of Good Corporate Governance On Financial Performance In Indonesian Conventional Banking

Abstract

This study aims to determine the effect of good corporate governance on financial performance in conventional banking for the period 2018-2020. The population of this study is traditional banks, totaling 44 banks. Sample selection through the purposive sampling method. Thirty-two banks meet the criteria as research samples so that the research data is 96. The data analysis technique used is classical assumption test and then hypothesis testing. The statistical method used is multiple linear regression analysis.This study shows that institutional ownership has no significant effect on Banking Financial Performance. In contrast, the board of directors has a substantial impact on the banking financial performance. Together, the independent board of commissioners, the board of directors, the audit committee, and leverage (equity debt) significantly affect banking financial performance.