The Effect of Good Corporate Governance on the Performance of Village Credit Institutions in Blahbatuh Sub District

Abstract

Given the important role of the LPD, which functions to
receive public savings in the form of savings and deposits and distribute it back with credit to the community, so that the LPD profits can be used for the welfare of the village community, the LPD must be able to maintain performance so that the LPD needs to apply the principles of Good Corporate Governance. The principles of Good Corporate Governance can be interpreted as a process used by companies to improve the quality of company performance. This study aims to re examine the influence of the variables of transparency, accountability, responsibility, independence,
and fairness on the performance of the Village Credit Institution (LPD). The number of samples used in this study were 76 respondents. Determination of the sample using purposive sampling method. The analytical tool used is multiple linear regression analysis. The results showed that the variables of transparency, accountability, and responsibility had a positive effect on the performance of the Village Credit Institution in Blahbatuh District, while independence and fairness had no significant effect on the performance of the Village Credit Institution in Blahbatuh District.