FINANCIAL GOOD CORPORATE GOVERNANCE IN INDONESIA
Journal Title: International Journal of Business Management & Research (IJBMR) - Year 2017, Vol 7, Issue 1
Abstract
Good financial performance can be achieved by implementing of the Good Corporate Governance.(GCG). Due to the implementation of good GCG will provide a good impact on the companies financial performance and the national economy. World Economic Forum Report 2011-2012 showed that the lack of availability of infrastructure is the second biggest problem after the inefficiency of government bureaucracy for businesses in doing business in Indonesia. Indonesia only ranks 76th out of 134 countries when measured in the quality of overall infrastructure rating. The Indonesia rating is under Singapore which is 2nd rank, Malaysia 26th rank, and Thailand 42nd rank. Better implementation of GCG in the transport sector will affect the economy of the nation. The positive impact of the GCG implementation in the transportation sector can accelerate the increase in economic growth, prompting investors to invest in the transportation company in Indonesia. This study examine the mechanisms of GCG which focused on the board of directors, independent of directors, the board of directors , and the size of the company . The objective of this study is whether the composition GCG in the company affects the company's financial performance. The better implementation of GCG companies in the transport sector will affect the national economy. The positive impact of the implementation of GCG in the transport sector in Indonesia that would provide convenience in transportation and logistics activities will also increase Indonesia's economic growth, prompting investors to invest in the transport sector company .The results of this study showed GCG affect the company's financial performance. Suggestions for the company to increase the number of commissioners and the size of the company as well as more attention to the company's financial performance.
Authors and Affiliations
BUNGA RIYANDI, IR. MEITA PRAGIWANI, MM
Keywords
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