The Impact of CGPI Award towards Financial Performance of LQ45 Firms

Abstract

Corporate governance is highly recommended by the government for large companies in Indonesia. Very few companies that have IPOs in Indonesia apply corporate governance, so there is still little research that addresses the impact of corporate governance on corporate performance. The researcher tried to analyze the impact of corporate governance on the financial performance of companies listed on LQ45. Analysis uses company samples taken from 2015-2017. From previous research, it can be indicated that the implementation of corporate governance has a positive and significant influence on company performance. However, from this analysis, the results show that the Corporate Governance Perception Index (CGPI) Award has no effect on ROA, this is different from other variables such as the percentage of independent commissioners and the size of the board that have a positive effect on ROA of companies registered with LQ45.