THE INFLUENCE OF GCG ON THE FINANCIAL PERFORMANCE OF BANKING COMPANIES LISTED ON THE IDX FOR THE 2020-2022 PERIOD

Abstract

This research aims to examine the influence of good corporate governance on the financial performance of banking companies on the Indonesia Stock Exchange in 2020-2022. The aim of this research is to determine the effect of implementing Good Corporate Governance on financial performance. The purpose of implementing GCG is to encourage the achievement of corporate sustainability through management based on the principles of transparency, accountability, responsibility, independence and fairness. This study uses a quantitative approach. The method used is the purposive sampling method. The population in this research is the annual financial reports of banking companies listed on the Indonesia Stock Exchange during the 2020-2022 period. The research results show that GCG proxies, namely, independent commissioners, managerial ownership, institutional ownership, audit committees influence the company's financial performance.