Tri Hita Karana Culture as Moderating the Influence of Good Corporate Governance Principles

Abstract

One rural financial institution that is currently developing, especially in Bali, is the Village Credit Institution (LPD). LPD performance is the achievement of an organization and contains several things such as the existence of certain targets achieved. An increase in organizational performance that has an impact on achieving the goals of the organization must be supported by the existence of good corporate governance. The application of the principles of Good Corporate Governance is very necessary in running a business. To maximize performance in an organization, an organization basically must also have the view that its performance is influenced by good values ​​derived from the power of Balinese cultural philosophy Tri Hita Karana. The object of this study used 35 LPD in all Denpasar LPD. The results show that the principles of good corporate governance can improve the performance of LPD. Other research results also show that the Tri Hita Karana culture weakens the relationship between the principles of good corporate governance on performance.

Key Words: Good Corporate Governance, Performance, Tri Hita Karana, LPD

DOI: 10.7176/RJFA/10-24-18

Publication date: December 31^st 2019