The Impact of Corporate Governance on Firm Performance: A Case Study of Property, Real Estate and Building Construction’s Listed Firm in the Indonesian Stock Exchange

Abstract

— This study aims to analyze the effect of corporate governance on firm performance in the Property, Real Estate, and Building Construction sectors in the Indonesia Stock Exchange in the 2015-2018 period. The research variables used were commissioners, independent commissioners, directors, women directors, independent directors, audit committees, nomination committees, remuneration committees and Return On Assets (ROA) and Return On Equity (ROE). The research sample was taken using the purposive sampling method using 21 companies with quarterly financial statements so that there were 336 observations. The method used is Ordinary Least Square (OLS) with the backward method. The results showed that only female directors who influenced company performance were measured using ROA and ROE, where the remuneration committee only affected ROA. It can be concluded that, in addition to provide diversity in women's directors for decision making, they also have a high degree of caution for risk.