Pengaruh Good Corporate Governance Terhadap Kinerja Perusahaan Yang Terdaftar Pada The Indonesian Institute For Corporate Governance (IICG)

Abstract

The main objective of this research was to analyze the correlation between good corporate governance (GCG) application and financial performance of the company. GCG application score was the variable that used as the indicator of GCG. Economic value added were the variables that used as the indicator of financial performance of the company. This research was an assosiative explanation research where the variables had causality characteristic. The sample of this research take from Indonesian Institute of Corporate Governance. They were chosen by purposive sampling method. Pooling (time series and cross sectional) data were used in this research, it was obtained from CGPI reports and financial statement at year 2004-2007. Statistic method through simple regression analysis was used in hypotesis testing. The result of this research showed that GCG didn’t influence financial performance siugnificantly. EVA can’t be explained by GCG application.