The Influence of Good Corporate Governance, Ownership Structure and Bank Size to the Bank Performance and Company Value in Banking Industry in Indonesia

Abstract

This research investigates the effect of  good corporate governance, ownership structure and bank size on bank’s performance and firm value of banking industry in Indonesia. The sample are 16 banks with foreign capital concentration and go public at the Indonesia Stock Exchange in the period of  2007-2012. The data analyzed by PLS (Partial Least Square) with good corporate governance variable using indicator audit committee and independent commissioners, the ownership structure, the size of the bank using an indicator variable capital and outstanding loans, the variable with the banking performance indicators ROA, ROE, NIM, LDR, BOPO, NPL and the value of the company by using Tobin’s Q.  The results of the research shows that: good corporate governance had a significant effect on bank’s performance, ownership structure there is no positive effect on bank’s performance, bank size had a significant effect on bank’s performance, good corporate governance had a significant effect on firm value, ownership structure had a insignificant effect on firm value, bank size had a insignificant effect on firm value, and bank’s performance had a significant effect on  firm value.

Key words: good corporate governance, ownership structure, bank size,  bank’s performance, firm value.