PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN PERBANKAN

Abstract

The purpose of this study is to evaluate the effect of corporate governance mechanism on financial performance in the
banking sector. The independent variables consist of institutional ownership, management ownership, independent board
director, board of directors and audit committee. Bank performance is measured by Return On Equity (ROE). The
population in this study is the bank listed in Indonesia Stock Exchange (IDX) in the period 2011-2013. This study data
come from bank annual reports obtained from the Indonesian Stock Exchange website and Indonesian Capital Market
Directory (ICMD). By purposive sampling method, this research got28 samples in each period, so 84 (28 sample × 3
years) annual report will be used in this research. The analysis technique used to test the hypothesis is multiple regression
with SPSS 16.The results show that the board of directors have a positive effect to the bank performance. Iinstitutional
ownership has a negative effect to bank performance. However, management ownership, independent board and audit
committee have no influence to bank performance.
Keywords: Institutional ownership, Management ownership, Independent board directors, Board of directors, Audit
committee, Return on equity, corporate governance