Determinants Of Financial Performance Of Banking Companies Registered In Indonesia Stock Exchange

Improving the performance of banking companies can be done by implementing good corporate governance, which is a corporate governance system that explains the relationship between all parties with an interest in a regulated and organized business. Good corporate governance needs to be implemented by banking companies because it can reduce agency conflicts between company owners and managers of banking companies. This study aims to analyze determinant of the financial performance of banking companies listed on the Indonesia Stock Exchange. The number of samples used in this study were 14 banking companies with three years of observation in order to obtain a total number of observations of 42. The sampling was carried out by using purposive sampling method. This study uses data collection methods in the form of non-participant observation methods. The data analysis technique used is multiple linear regression analysis. The results showed that good corporate governance which includes the size of the board of directors has a positive effect on the company's financial performance (ROA), the size of the board of commissioners has no effect on the company's financial performance (ROA), managerial ownership has a positive effect on the company's financial performance (ROA) and the size of the company does not. affect the company's financial performance (ROA).