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IJSTR >> Volume 8 - Issue 4, April 2019 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Financial Performance Of Indonesianís Banking Industry: The Role Of Good Corporate Governance, Capital Adequacy Ratio, Non Performing Loan And Size

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Nisrul Irawati, Azhar Maksum, Isfenti Sadalia, Iskandar Muda



Market Systems, Good Corporate Governance, bank Size, Capital Adequacy Ratio, Managerial Ownership, Non Performing Loan, Financial Performance



The implementation of Good Corporate Governance (GCG) in Indonesia has been running for 15 years since 2000. Good Corporate Governance is one of the pillars of the economic market system. GCG application provides an opportunity in creating and providing healthy completion environment and conducive investment climate. Based on this thinking, the GCG application by Indonesian banking become very important issue in order to produce economic success. This research aim is to get empirical test on GCG factors and other regulatory driven factors that is Capital Adequacy Ratio (CAR) and Non Performing Loan (NPL) and bank Size. Source of data is secondary data from 30 banking that is registered in BEI of year 2011-2015. Then using tools of analysis Eviews until the research get proceed that Capital Adequacy Ratio, Managerial Ownership and bank Size influence positive significantly on financial performance while other variable NPL has a insignificant negative effect and Committee Audit influence positive but insignificant on banking financial performance.



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