THE IMPACT OF GOOD CORPORATE GOVERNANCE, PROFITABILITY, AND OPERATING EFFICIENCY ON FINANCIAL PERFORMANCE (CASE STUDY ON BANKS LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2022-2023)

Della Al Fauziah; Wiwit Hariyanto

doi:10.61796/ijecep.v1i3.41

Authors

Della Al Fauziah Muhammadiyah University of Sidoarjo
Wiwit Hariyanto
[email protected]
Muhammadiyah University of Sidoarjo

Vol. 1 No. 3 (2024): Journal of Economic and Economic Policy

Articles

September 30, 2024

Downloads

View Article

Abstract
How to Cite
Metrics
References
License

Background: This study investigates the interplay between Good Corporate Governance (GCG), profitability, and operational efficiency on the financial performance of banks listed on the Indonesian Stock Exchange (IDX) from 2022 to 2023. Specific Background: With increasing scrutiny on corporate governance and financial metrics in the banking sector, it is imperative to understand how these elements contribute to financial outcomes. Knowledge Gap: Despite existing literature on corporate governance and profitability, limited research addresses their collective impact on the financial performance of Indonesian banks, particularly concerning operational efficiency. Aims: This research aims to analyze the effects of GCG, represented by institutional ownership and board composition, alongside profitability (Return on Equity) and operational efficiency (BOPO ratio) on banks' financial performance (Return on Assets). Results: The findings reveal that institutional ownership and board composition do not significantly impact financial performance; however, profitability has a positive and significant effect, while operational efficiency negatively affects financial performance. Novelty: This study contributes uniquely by highlighting the critical role of profitability in enhancing financial performance, alongside the implications of operational efficiency management. Implications: The results provide essential insights for bank management to strategize for improved financial performance and suggest that regulators should emphasize implementing effective GCG frameworks. By shedding light on the factors influencing bank performance, this study aims to support policymakers in enhancing the stability and efficiency of Indonesia's banking sector.

Al Fauziah , D., & Hariyanto, W. (2024). THE IMPACT OF GOOD CORPORATE GOVERNANCE, PROFITABILITY, AND OPERATING EFFICIENCY ON FINANCIAL PERFORMANCE (CASE STUDY ON BANKS LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2022-2023) . Journal of Economic and Economic Policy, 1(3), 139–157. https://doi.org/10.61796/ijecep.v1i3.41

Download Citation

A. Setyowati and E. Maryanti, “Corporate Social Responsibility in Mediating the Effect of Green Accounting, Firm Size and Good Corporate Governance on Company Financial Performance: Corporate Social Responsibility dalam Memediasi Pengaruh Green Accounting, Firm Size, dan Good Corporate,” pp. 1–19, 2024.

Khairunnisa and E. Besli, “Pengaruh Mekanisme Good Corporate Governance (Gcg) Terhadap Kinerja Keuangan Perusahaan Sebelum Masa Pandemi Covid-19,” J-Aksi J. Akunt. Dan Sist. Inf., vol. 4, no. 3, pp. 308–318, 2023, doi: 10.31949/jaksi.v4i3.6784.

Yuniar Fitriyani, “T he influence of good corporate governance and company size on the financial performance of banking subsector companies listed on the IDX,” Akuntabel, vol. 18, no. 4, pp. 703–712, 2021.

N. T. Wulansari, Elwisam, and K. Digdowiseiso, “Analysis of the Effect of Price Earning Ratio , Price To Book Value , Earning Per Share , Debt To Equity Ratio and Return on Equity in Stock Price Company Lq45 in Exchange Effect Indonesia Year 2016-2020,” J. Syntax Dmiration, vol. 4, no. 2, pp. 332–348, 2023.

F. D. C. Mulyaningtyas, “PENGARUH GOOD CORPORATE GOVENANCE DAN UKURAN ENTITAS TERHADAP KINERJA KEUANGAN PADA ENTITAS SUB SEKTOR BANK YANG TERDAFTAR,” Brigham Young Univ., vol. 1, no. 69, pp. 5–24, 2021.

Romansyah Sahabuddin, Anwar, and Dewi Amelia Rahman, “Pengaruh Risiko Kredit dan Efisiensi Operasional terhadap Kinerja Keuangan pada PT. Bank Sulselbar,” Accounting, Accountability, Organ. Syst. J., vol. 3, no. 2, pp. 111–123, 2022, doi: 10.47354/aaos.v3i2.318.

G. S. Nugroho, E. Elwisam, and K. Digdowiseiso, “Rgec (Risk Profile, Good Corporate Governance, Earnings, Capital) Study of State-Owned Companies in the Banking Sector Listed on the Indonesian Stock Exchange 2018-2020,” J. Syntax Admiration, vol. 4, no. 2, pp. 390–405, 2023, doi: 10.46799/jsa.v4i2.881.

N. J. Onoyi and D. T. Windayati, “Pengaruh Ukuran Perusahaan, Good Corporate Governance dan Efisiensi Operasi terhadap Kinerja Keuangan (Studi Kasus pada Bank BUMN yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2020),” Zo. Keuang. Progr. Stud. Akunt. Univ. Batam, vol. 11, no. 1, pp. 15–28, 2021, doi: 10.37776/zuang.v11i1.763.

M. Fauzan, “Pengaruh Good Corporate Governance (GCG), Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), Dan Non Performing Loan (NPL) Terhadap Kinerja Keuangan Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2015-2018,” Ejournal Unisi, vol. 5, no. 2, pp. 56–70, 2019, [Online]. Available: file:///C:/Users/User/Downloads/945-Article Text-1596-1-10-20200401.pdf

dinda ayu Hanifah, “PENGARUH KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN DENGAN CORPORATE SOCIAL RESPONSIBILITY DAN KEPEMILIKAN INSTITUSIONAL SEBAGAI VARIABEL PEMODERASI (Studi Empiris pada Bank Konvensional yang Terdaftar dalam Bursa Efek Indonesia Tahun 2015-2017),” Το Βημα Του Ασκληπιου, vol. 9, no. 1, pp. 76–99, 2019.

M. Y. Arya Rachman, “ANALISIS TINGKAT KESEHATAN BANK DENGAN MENGGUNAKAN PENDEKATAN RGEC (RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS, CAPITAL) (STUDI KASUS PADA PT BANK CENTRAL ASIA TAHUN 2020-2022),” vol. 12, no. 5, pp. 2763–2779, 2023.

E. Prasetio and R. Rinova, “Pengaruh Corporate Governance Terhadap Kinerja Keuangan Perusahaan Sektor Trade, Service And Investmen,” J. Disrupsi Bisnis, vol. 4, no. 2, p. 129, 2021, doi: 10.32493/drb.v4i2.9433.

tiara pandansari risma deniza, sri wahyuni, hardiyanto wibowo, “PENGARUH KEPEMILIKAN INSTITUSIONAL, PROPORSI DEWAN KOMISARIS INDEPENDEN, FREKUENSI RAPAT DEWAN KOMISARIS DAN LATAR BELAKANG PENDIDIKAN DEWAN KOMISARIS TERHADAP KINERJA KEUANGAN PERUSAHAAN,” vol. 2, no. 4, pp. 567–578, 2023.

N. L. S. D. Abundanti, “Tujuan utama perusahaan yang sudah,” vol. 8, no. 10, pp. 6099–6118, 2019.

A. Agustina Putri and N. Fathurrahmi Lawita, “Pengaruh Kepemilikan Institusional dan Kepemilikan Manajerial Terhadap Penghindaran Pajak,” J. Akunt. dan Ekon., vol. 9, no. 1, pp. 68–75, 2019, [Online]. Available: https://ejurnal.umri.ac.id/index.php/jae/article/view/1341

L. G. Robert Jao, Fransiskus Randa, Anthony Holly, “PENGARUH KARAKTERISTIK DEWAN DIREKSI TERHADAP nn KINERJA KEUANGAN PERUSAHAAN NON KEUANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA,” vol. 18, pp. 123–134, 2021.

P. D. Kumalasari, “Pengaruh Profitabilitas Terhadap Manajemen Laba Pada Perusahaan Keuangan Dan Manufaktur,” E-Jurnal Ekon. dan Bisnis Univ. Udayana, vol. 10, no. 09, p. 809, 2021, doi: 10.24843/eeb.2021.v10.i09.p08.

F. Kurniansyah, E. Saraswati, and A. F. Rahman, “Corporate Governance, Profitability, Media Exposure, and Firm Value: the Mediation Role of Environmental Disclosure,” J. Minds Manaj. Ide dan Inspirasi, vol. 8, no. 1, p. 69, 2021, doi: 10.24252/minds.v8i1.20823.

I. R. L. Rega Ariansyah1, Rinny Meidiyustiani2, “PENGARUH UKURAN PERUSAHAAN, KEPEMILIKAN INSTITUSIONAL DAN LIKUIDITAS TERHADAP KINERJA KEUANGAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL MODERASI,” vol. 1, no. 2, pp. 247–263, 2023.

M. I. Abdul Azis and E. Sukarmanto, “Pengaruh Kepemilikan Manajerial dan Kepemilikan Institusional terhadap Kinerja Keuangan pada Perusahaan BUMN yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2019-2021,” Bandung Conf. Ser. Account., vol. 3, no. 1, pp. 596–602, 2023, doi: 10.29313/bcsa.v3i1.6906.

Y. Yusdianto and A. Ramadhoni, “Pengaruh Kepemilikan Institusional dan Ukuran Perusahaan Terhadap Kinerja Keuangan Pada Perusahaan Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Periode Tahun 2015 2021,” Ikraith-Ekonomika, vol. 6, no. 2, pp. 153–161, 2022, doi: 10.37817/ikraith-ekonomika.v6i2.2347.

W. A. Pramudityo and Sofie, “Pengaruh Komite Audit, Dewan Komisaris Independen, Dewan Direksi Dan Kepemilikan Institusional Terhadap Kinerja Keuangan Perusahaan,” J. Ekon. Trisakti, vol. 3, no. 2, pp. 3873–3880, 2023, doi: 10.25105/jet.v3i2.18026.

N. Septiana and M. A. Aris, “Analisis Proposi Dewan Komisaris Independen, Ukuran Dewan Direksi, Komite Audit, Blockholder Ownership terhadap Kinerja Keuangan,” J. Akuntansi, Keuangan, dan Manaj., vol. 4, no. 2, pp. 101–114, 2023, doi: 10.35912/jakman.v4i2.1051.

S. F. Zahwa and B. Soedaryono, “Pengaruh Profitabilitas, Leverage Dan Pertumbuhan Perusahaan Terhadap Kinerja Keuangan Perusahaan (Studi Empiris Pada Perusahaan Sektor Transportasi Dan Logistik Yang Terdaftar Di Bursa Efek Indonesia) Pada Periode 2020-2021,” J. Ekon. Trisakti, vol. 3, no. 2, pp. 3863–3872, 2023, doi: 10.25105/jet.v3i2.18136.

F. Affi1 and H. A. 2, “PENGARUH PROFITABILITAS, SOLVABILITAS DAN LIKUIDITAS TERHADAP KINERJA KEUANGAN PERUSAHAAN,” vol. 5, no. 1, pp. 59–77, 2023.

N. Afira, A. H. Wijaya, and W. Fitri, “Pengaruh Profitabilitas Dan Leverage Terhadap Nilai Perusahaan Dengan Kinerja Keuangan Sebagai Variabel Intervening dimasa Pandemi,” J. Ekon. Manaj. dan Bisnis, vol. 2, no. 1, pp. 121–128, 2023, doi: 10.47233/jemb.v2i1.538.

J. Dermawantika, S. S. Wardiningsih, and S. S. Utami, “ANALISIS PENGARUH RISIKO KREDIT, RISIKO PASAR, DAN EFISIENSI OPERASI TERHADAP KINERJA KEUANGAN PADA BANK UMUM BUMN YANG TERDAFTAR DI BEI PERIODE 2014 – 2018,” vol. 20, no. 2, pp. 186–193, 2020.

S. M. Rizka Aji Gagas Gumilar1, “THE INFLUENCE OF EFFICIENCY ON THE PERFORMANCE OF BANK LISTED ON THE INDONESIAN STOCK EXCHANGE,” Marg. J. Manag. Account. Gen. Financ. Int. Econ. Issues, vol. 2, no. 4, pp. 876–891, 2023, doi: 10.55047/marginal.v2i4.737.

G. D. Samudra, “Gender Diversity Dan Good Corporate Governance Terhadap Financial Distress,” Eqien J. Ekon. dan Bisnis, vol. 8, no. 2, pp. 52–60, 2021, doi: 10.34308/eqien.v8i2.226.

A. Sitanggang, “PENGARUH DEWAN KOMISARIS INDEPENDEN, KOMITE AUDIT, KEPEMILIKN MANAJERIAL DAN KEPEMILIKAN INSTITUSIONAL TERHADAP KINERJA KEUANGAN (STUDI EMPIRIS PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA 2016-2018),” vol. 7, no. 2, pp. 53–54, 2021.

S. F. Zahwa, Diftya Rachmitha Hunafah and Hasnawati, “PENGARUH UKURAN PERUSAHAAN, PERTUMBUHAN PERUSAHAAN, KEPEMILIKAN SAHAM PUBLIK DAN PROFITABILITAS TERHADAP PENGUNGKAPAN CSR SELAMA MASA PANDEMI COVID-19,” vol. 2, no. 2, pp. 1615–1628, 2022.

C. T. N. Nazir2, “PENGARUH PROFITABILITAS, LEVERAGE, PERTUMBUHAN PENJUALAN, DAN UKURAN PERUSAHAAN TERHADAP PENGHINDARAN PAJAK,” Bandung Conf. Ser. Account., vol. 4, no. 1, pp. 189–208, 2021, doi: 10.29313/bcsa.v4i1.11888.

B. Setyawan, “Pengaruh Good Corporate Governance, Ukuran Perusahaan Dan Profitabilitas Terhadap Kinerja Keuangan Perusahaan (Studi Empiris Terhadap Perusahaan Sektor Perbankan Di Bursa Efek Indonesia),” J. Mitra Manaj., vol. 3, no. 12, pp. 1195–1212, 2019, doi: 10.52160/ejmm.v3i12.313.

A. Aprilia and N. W. Soebroto, “ANALISIS PENGARUH RASIO LIKUIDITAS, EFISIENSI OPERASI, DAN RASIO SOLVABILITAS TERHADAP KINERJA KEUANGAN PADA PT BANK MAYBANK INDONESIA Tbk PERIODE 2010-2018,” Keunis, vol. 8, no. 2, p. 167, 2020, doi: 10.32497/keunis.v8i2.2115.

L. ANTHONY HOLLY, “PENGARUH KEPEMILIKAN MANAJERIAL, KEPEMILIKAN INSTITUSIONAL, DAN MANAJEMEN LABA TERHADAP KINERJA KEUANGAN,” vol. 04, no. 01, pp. 1–23, 2021.

N. S. S. Putri Fauziah Zahra, Lulu Nailufaroh, “PENGARUH LIKUIDITAS SOLVABILITAS DAN PROFITABILITAS TERHADAP KINERJA KEUANGAN,” vol. 2, pp. 77–86, 2023.