Effect of Good Corporate Governance on Financial Performance

Abstract

This study aims to determine the effect of good corporate governance on the financial performance of automotive companies listed on the Indonesian stock exchange 2017-2019. The variables of this study are the board of commissioners, the board of independent commissioners, the board of directors, the audit committee and the company's financial performance using the return on equity ratio and Durbin Watson. This study used 42 samples consisting of 14 companies viewed for 3 periods. The sample used was obtained from www.idx.co.id. This research uses descriptive analysis method and uses library research techniques. The results of this study indicate that good corporate governance does not have a positive influence on the financial performance of automotive companies listed on the Indonesian stock exchange in 2017-2019.