JEFMS Journal

ABSTRACT:

The weakness of good corporate governance in Indonesia is still weak. One of the important roles of implementing good corporate governance in supporting sustainable economic growth and stability is to improve financial performance in the current era of the digital revolution. Good management will cause the supervisory process to run well so that the company's financial performance can be monitored and have an impact on the planned targets being achieved. The achievement of the company's target makes financial performance increase so that it has an impact on increasing the value of the company and maintaining the company's sustainability in the long term. This study aims to identify and overcome obstacles that can hinder the company's ability to generate profits and improve the desired company's financial performance. The method of analysis in this study uses multiple linear regression. On the other hand, the research also uses other tests, namely descriptive statistical tests and hypothesis testing. The results of the study indicate that good corporate governance simultaneously has a significant effect on financial performance with a value of 16,246. The author advises companies to pay attention to the existence of good corporate governance which is not just meeting the requirements of legislation, if good corporate governance is improved, there will be an increase in costs to be incurred by the company.

KEYWORDS:

Audit Committee, Board of Commissioners, Foreign Ownership, Financial Performance

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