What is it about?
This study is an empirical study that aims to investigate the effect of mediating bank stability on the relationship between Good Corporate Governance (GCG) and firm performance. This study uses a quantitative approach. The data type is secondary data sourced from the annual report of each sample company. The sample used in this study was 178 years of banking companies listed on the Indonesia Stock Exchange from 2013-2017. The data analysis technique used in this study is path analysis with the help of the SPSS program application. The direct-indirect effect model shows the research results that the stability of banks has a mediating role in the form of a partial relationship between Good Corporate Governance (GCG) and firm performance.
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Why is it important?
Our findings show that Efforts to minimize risk to create bank stability can be realized when banking management can implement GCG principles properly so that internal supervision and control mechanisms can be maintained.
Perspectives
This article provides insight for banking companies to pay more attention to and improve the implementation of existing good corporate governance. In addition, companies must also manage bank stability well so that with a more stable application, it will be bolder to create innovations in the type of lending so that they can increase company profits which then have an impact on improving company performance.
Muhammad Wisnu Girindratama
Universitas Surabaya
Read the Original
This page is a summary of: HUBUNGAN GOOD CORPORATE GOVERNANCE DAN KINERJA PERUSAHAAN: PERAN MEDIASI STABILITAS BANK, Jurnal RAK (Riset Akuntansi Keuangan), October 2019, Universitas Tidar,
DOI: 10.31002/rak.v4i2.2126.
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