Corporate Governance and Its Influence on Financial Performance of State-Owned Enterprises (Soes) In Indonesia
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 2
Abstract
This study aims to examine the influence of Corporate Governance (CG) index, and CG mechanism on financial performance of SOEs in Indonesia. The sample used in this research is BUMN which included government program program called "nawacita" which is hunting and fishery sector, food sector, mining sector, manufacturing industry sector, and construction/tourism sector. The sample comprises 25 companies for the period 2014-2016, with a total of 50 observations. The dependent variable in this study is the company's financial performance as measured by Net Profit Margin (NPM) and independent variables are CG index, and CG mechanism (Board of Commissioners, Audit Committee, Ownership Structure, and CG Committee). The results show that from the five independent variables, there are three variables that affect on financial performance, namely: CG Index, Board of Commissioners, and CG Committee, while Audit Committee and Ownership Structure have no effect on financial performance of SOEs. It can be implied that the better the CG score will have an impact on the financial performance of SOEs.
Authors and Affiliations
Rini Fatmawati, Djoko Suhardjanto
Keywords
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