The Effect of Good Corporate Governance on Company Profits

The aim of this study is to understand and quantify the relationship between good corporate governance (GCG) and business profit development, as well as to assess the state of GCG implementation in Indonesia. The basic impact of independent board size and managerial ownership on business earnings was examined in this analysis using Return On Asset (ROA). The samples span the timeframe 2015–2019 and include banking companies listed on the Jakarta Stock Exchange (BEJ). Purposive sampling was used to achieve a sample size of 15 businesses. Analyses of data using automated applications and panel data regression techniques. The findings indicated that while an independent board of commissioners had no discernible impact on company income, administrative ownership had a favorable and discernible effect on company profits as measured by ROA metrics.