Title:
CORPORATE GOVERNANCE MECHANISM AND PROFITABILITY (INDONESIAN BANKING COMPANY CASE)

Authors:
Dian Anita Nuswantara, Nuhanda Dyah Sharon Carolina, Denpharanto Agung Krisprimandoyo, Indonesia

Abstract:

This study aims to examine the effect of good corporate governance mechanisms on the profitability of banks in Indonesia. The population of this research is the banking sector companies listed on the Indonesia Stock Exchange (IDX) in 2013-2018. The sampling method is purposive sampling, there are 186 banking companies used as samples. The analytical method used is multiple linear regression method. The results of this study indicate that the independent board of commissioners has a positive effect on bank profitability. The board of directors, the audit committee, and institutional ownership has no effect on bank profitability. The size of the company has a positive effect on bank profitability.