Transformational Leadership Style Moderating the Effect of Implementation of Good Corporate Governance Principles on Financial Performance

Abstract

This study aims to obtain empirical evidence regarding the effect of applying the principles of Good Corporate Governance on the financial performance of Savings and Loans Cooperatives in Denpasar city, strengthened by a transformational leadership style. The research sample was 210 Savings and Loans Cooperatives in the city of Denpasar, both already and not certified with NIK. The method of determining the sample is the proportionate stratified random sampling method and the data is collected using a questionnaire. The data analysis technique used Smart Partial Least Square (PLS). Based on the results of the study which showed that the application of GCG principles had a positive and significant effect on the financial performance of Savings and Loans Cooperatives in Denpasar, both those who had and have not been certified with NIK.

Keywords: Financial Performance, GCG, Transformational Leadership Style.

DOI: 10.7176/RJFA/13-8-02

Publication date: April 30^th 2022