Analysis of The Influence of Good Corporate Governance and Financial Health Ratio on Banking Performance

Aloysius Harry Mukti, Tamara Rahmawati

Abstract


This study aims to examine the effect of good corporate governance and financial health ratios as measured by CAR NPL and BOPO on banking performance. This study used a sample of 93 and the objects in this study were conventional banking companies listed IDX 2017-2019. This study uses secondary data with a sample selection method, namely purposive sampling. This study uses 5 data analysis methods, namely descriptive statistics, classical assumption test, hypothesis test, f test, and partial test / t. This study proves that good corporate governance has no effect on banking performance, financial health ratios as measured by CAR have no effect on banking performance, financial health ratios as measured by NPL have no effect on banking performance and financial health ratios as measured by BOPO have a negative effect on banking performance. 

Keywords


Good Corporate Governance, Financial Health Ratio

Full Text:

PDF

References


Ayu & Abudanti. (2018). Effect of Capital Adequacy Ratio, Non Performing Loan, Loan to Deposit Ratio on Return on Assets. Journal of Management Unud. Vol 7 No 5, pp. 2410-2441.

Bank Indonesia. (2016). Implementation of Governance for Commercial Banks. Number 55. BI. Jakarta.

Cynthia & Yadna. (2019). Effect of CAR, NPL, DER and LAR on ROA at Commercial Banks on the Indonesia Stock Exchange. Management Journal. Vol 8 No 12, pp. 7411-7430.

Ghozali, I. (2018). Application of Multivariate Analysis with IBM SPSS 25 Program. Edition 9. Semarang: Diponegoro University Publishing Agency.

Financial Fervices Authority. 2014. Assessment of the Soundness of Islamic Commercial Banks and Sharia Business Units. Number 10/03. SE-OJK. Jakarta.

Financial Fervices Authority. 2016. Assessment of Bank Soundness Level. Number 4. OJK. Jakarta.

Financial Fervices Authority. 2016. Minimum Capital Adequacy Requirements for Banks. Number 11. OJK. Jakarta

Jensen & Meckling. (1976). Theory of the firm: Managerial behavior, agency cost and ownership structure. Journal of Finance Economics. Vol 3 October 1976, pp. 305- 360.

Cashmere. (2016). Financial Statement Analysis. Jakarta: Raja Grafindo Persada.

Christian and Lina. (2019). Effect of Good Corporate Governance (GCG) on Return on Assets (ROA). Gunadarma University Accounting Journal, pp. 1-16.

Kristianti and Yovin. (2016. Factors Affecting Bank Performance: Cases of Top 10 Biggest Government and Private Banks in Indonesia in 2004-2013. Journal Review of Integrative Business and Economics Research. Vol 5 No 4 October 2016, pp. 371-378.

Minister of State-Owned Enterprises. (2011). Implementation of Good Corporate Governance in BUMN. Number 01. BUMN. Jakarta.

Muljono, TP (1996). Credit Management for Commercial Banks. Yogyakarta: BPFE.

Novrianda and Shar. (2016). Analysis of the Implementation of Good Corporate Governance (GCG) in Relation to Financial Performance at PT Bank Rakyat Indonesia). Journal of Baabu Al-Ilmi. Vol 1 No 2 2 October 2016, pp. 84-108.

Sugiyono. (2016). Quantitative, Qualitative and R&D Research Methods. Bandung: PT Alphabet.

Warren, et. al. (2005). Accounting. Jakarta: Salemba Empat.

Yusriani. (2018). The Influence of CAR, NPL, BOPO, and LDR on Profitability of State-Owned Commercial Banks (Persero) on the Indonesia Stock Exchange. Journal of Unibos Makassar. Vol 4 No 2 February 2018, pp. 1-17.

Zulkarnain, A. (2017). Analysis of the Influence of CAR, NPL, BOPO and LDR on Profitability of State-Owned Enterprises in the Banking Sector in Indonesia. Bilancia Journal. Vol 1 No 2, pp. 176-188.

www.idx.co.id




DOI: https://doi.org/10.24198/jaab.v5i1.38553

Refbacks

  • There are currently no refbacks.


Copyright (c) 2022 Journal of Accounting Auditing and Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Journal of Accounting Auditing and Business (JAAB) Indexed in:


width= width=  width=width= width=

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.