Hasnawati, Sri (2016) GCG, Financial Performance, And Market Performance Of Public Companies In Indonesia. 2016 IABC, 2016 IEC & 2016 ISEC Proceedings. 405-1-405-10. ISSN 2157-9660 (Online)

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The study objective is to elaborate the implementation of good corporate governance policies to create a healthy business for public companies in the capital markets. Path analysis is the model used to answer the study’s questions. The study’s population was the public companies that had already implemented good corporate governance and had a ranking at the Corporate Governance Perception Index (CGPI) during the exception regulation for financial institutions and banks. The research sample consisted of 63 companies. The study resulted into two research models. The first hypothesis resulted into the first model, which included corporate governance and investment policy variables affecting the financial performance while the financing policy did not affect the company's financial performance. The second model had hypothesis results, consisting of three variables affecting the market performance with different impacts, namely financing policies, investment policies, and financial performances. It was found that good corporate governance did not affect the market performance. This finding explained that good corporate governance along with the investment policies had a direct impact on the financial performance of the company but good corporate governance did not affect the market performance. It could be interpreted that the implementation of good corporate governance for public companies was only a formality to comply with Bapepam, which was voluntary. Hence, investors in the stock market did not take the good corporate governance variable as one of the indicators used to make investment decisions in the stock market. Another finding was that the financing policy did not affect the financial performance and the market performance of the public companies.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Fakultas Ekonomi dan Bisnis (FEB) > Prodi Manajemen
Depositing User: Dr Sri Hasnawati
Date Deposited: 29 May 2020 19:11
Last Modified: 29 May 2020 19:11
URI: http://repository.lppm.unila.ac.id/id/eprint/21127

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