THE APPLICATION OF CORPORATE GOVERNANCE TO BANKING FINANCIAL PERFORMANCE

Authors

  • Teddy Aprilliadi STIE AL-KHAIRIYAH

Keywords:

corporate governance, financial performance

Abstract

One of the goals of setting up a company is to increase prosperity and maximize the wealth of their owners or shareholders by increasing company performance. Increasingly complex corporate management activities will increase the need for corporate governance practices to ensure that management runs well. This study aims to, to determine the effect of the size of the board of commissioners on the company's financial performance, to determine the effect of the size of the board of directors on the company's financial performance, and to determine the effect of company size on the company's financial performance. The results showed that the size of the board of commissioners had no effect on the company's financial performance because it obtained a t value of -1.572 and compared with a t table value of 1.98761 with a significant value of 0.120 and a significant level of 0.05. This shows t-count -1.572 <t table 1.98761 and has a significant 0.120> 0.05 which means no significant effect. The size of the board of directors did not affect the company's financial performance because it obtained a calculated value of -0.849 and compared with a t table value of 1.98761 with a significant value of 0.398 and a significant level of 0.05. This shows t -0.849 <1.98761 t table and has a significant 0.398> 0.05, which means no significant effect. The size of the company affects the financial performance of the company because it obtains a calculated value of 4,150 and compared with a t table value of 1.98761 with a significant value of 0,000 and a significant level of 0.05. This shows tcount 4,150> 1,98761 t tables and has a significant 0,000 <0.05, which means a significant effect.

 

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Published

2020-10-26

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