The Influence Mechanism of Corporate Governance on Performance of the Company

Abstract

This study aims to examine the influence of corporate governance mechanisms on Performance Of The Company. Corporate governance mechanisms which examined in this study include the board of commissioners and managerial ownership, foreign ownership, debt financing, audit quality. The population in this study used manufacturing companyies listed in Indonesia Stock Exchange for the period 2015 to 2018. The sample in this research determined by purposive sampling method with total sample of 103 annual reports. Result statistical tests showed that the board of commissioners has no effect on the performance of the company witth sign. value of 0.312> 0.05, managerial ownership has no effect on the performance of the company witth sign. value of 0.191 <0.05, foreign ownership has no effect on the performance of the company witth sign. value of 0.495> 0.05, debt financing has no effect on the performance of the company with sign. value of 0.408> 0.05, while the audit quality have effect on the performance of the company with sign. value of 0.844> 0.05.  

Keywords: Board of Commissioners, Managerial Ownership, Foreign Ownership, Debt Financing, Audit Quality, Performance of Company

DOI: 10.7176/RJFA/10-20-08

Publication date:October 31^st 2019