The Effect of Good Corporate Governance Mechanism on Company’s Financial Performance

Abstract

Good Corporate Governance is a regulation that regulates the
relationship between shareholders, company management, creditors,
government, shareholders and other internship and external stakeholders to provide progress to the company. This can be done through improving the company's financial performance. This study aims to study the effect of Good Corporate Governance on the financial performance of transport companies listed on the Stock Exchange in the 2016-2018 period. The population of this study is the transportation sector companies listed on the Stock Exchange for the 2016-2018 period. The sample selection technique uses a purposive sampling method and a sample of 16 companies is obtained. Good Corporate Governance is proxied by the audit committee, the board of directors , the directors and independent board of directors an
independent variable, while the financial performance proxied by ROA is the dependent variable. Data analysis in this study used multiple linear regression analysis. The results showed that the audit committee and directorsdid not play a role in financial performance, while the board of directors and independent board of directors positively supported financial performance