The Influence of The Implementation of Good Corporate Governance Principles to Firm Performance

Ahmad Nurkhin(1), Kiswanto Kiswanto(2), Hasan Mukhibad(3), Abdul Rohman(4),

(1) Faculty of Economics, Universitas Negeri Semarang, Indonesia
(2) Faculty of Economics, Universitas Negeri Semarang, Indonesia
(3) Faculty of Economics, Universitas Negeri Semarang, Indonesia
(4) Faculty of Economics and Business, Universitas Diponegoro. Indonesia


This paper aims to examine the influence of implementation of good corporate governance (GCG) principles, including transparency, accountability, responsibility, independence, and fairness on corporate performance measured by Return on Assets (ROA) and Return on Equity (ROE) proxies. The research population is all company listed on Indonesian Stock Exchange (BEI). The samples are 146 companies collected using purposive sampling technique. Data are then analyzed using Multiple Regression Analysis method. The results show that the principles of transparency, accountability, responsibility, and fairness in the implementation of GCG do not significantly and positively influence ROA and ROE. Meanwhile, the independent principle of significantly and positively influences ROA and ROE. Thus, a company should be able to improve the implementation of independency principle to improve corporate financial performance. The results also show the fairness principle significantly but negatively influence to ROA and ROE. 


transparency, accountability, responsibility, independence, fairness, good governance, corporate performance






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