The Influence of Good Corporate Governance and Company Size on Financial Performance (Study on Property and Real Estate Company Listed in Indonesia Stock Exchange for the Period 2014-2016)

Abstract

This study aims to examine the influence of good corporate governance (GCG) and company size on the financial performance of property and real estate companies. The indicators of GCG used are the size of board of director and the size of board of commissioner. Financial performance as a dependent variable is measured by ROA. The data used is secondary data obtained from the financial and annual report through the website of Indonesia Stock Exchange (IDX). The population of this research is property and real estate sector companies listed on IDX for the period 2014-2016. Total sample used are 35 companies that is selected by purposive sampling technique. The data of this study is analyzed with multiple linear regression analysis. The results of this study indicates that the variable of GCG indicators and company size simultaneously have a significant influence on financial performance. In partial, the size of board of commissioner significantly has a positive influence on financial performance. Meanwhile, the size of board of director and company size partially have no significant influence on financial performance.

Keywords: Good Corporate Governance, Board of Director, Board of Commissioner, Company Size and Financial Performance.

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