Title:
The Impact of Good Corporate Governance Implementation on the Financial Performance of Islamic Banking in Indonesia

Authors:
M. Sadad Al Rafi and Sutrisno Sutrisno, Indonesia

Abstract:

This study aims to analyze the impact of Good Corporate Governance (GCG) implementation on the financial performance of Islamic banks in Indonesia. This study uses panel data covering a five-year period, namely from 2019 to 2023, and involves a sample of 17 Islamic banks that meet the selection criteria, with a quantitative approach with descriptive and analytical methods. Data analysis was conducted using panel data regression with the help of EViews 13 processing software. The results show that GCG implementation, the existence of an audit committee, and managerial ownership simultaneously have a significant effect on the financial performance of Islamic banks as measured by the Return on Assets (ROA) ratio. Partially, GCG has a significant negative effect, the audit committee has no significant effect, while managerial ownership has a significant positive effect on ROA. These findings provide important implications for strengthening governance structures to encourage more optimal financial performance of Islamic banks.

DOI: https://doi.org/10.51505/IJEBMR.2025.91023