Analysis Of The Application Of Good Corporate Governance (GCG) And Corporate Social Responsibility (CSR) To The Company's Financial Performance

Case Study On Banking Companies For The Period 2016-2020

Abstract

This study aims to determine the effect of Good Corporate Governance consisting of managerial ownership, institutional ownership, independent board of commissioners, audit committee and Corporate Social Responsibility on the financial performance of banking companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. This research method uses a deductive-inductive method with a population of banking companies listed on the Indonesia Stock Exchange. The sampling technique used purposive sampling with secondary data used in the form of annual reports of banking companies which can be accessed through the website www.idx.co.id for the 2016-2020 period. The data analysis technique used is descriptive analysis, classical assumption test consisting of normality test, autocorrelation test, multicollinearity test and multiple regression analysis. The results of this study managerial ownership, institutional ownership, independent board of commissioners, audit committee and Corporate Social Responsibility partially (t-test) have no effect on the financial performance of banking companies (ROE). Based on the F test, GCG and CSR have a significance value of 0.022 < 0.05 which simultaneously affects the financial performance of banking companies.