THE EFFECT OF GOOD CORPORATE GOVERNANCE ON THE FINANCIAL PERFORMANCE OF BANK PERKREDITAN RAKYAT BALI (2018-2021)

Abstract

This study aims to investigate the effect of Good Corporate Governance (GCG) in Financial Performance in BPR as measured by the ratio of Return of Asset (ROA) which is proxied by the size of the board of directors, size of the board of commissioners and managerial ownership. This study uses the financial statement of BPR Bali that registered in OJK for the period of 2018 – 2022. The sampling method is purposive sampling. The data analysis technique uses descriptive analysis, classic assumption test and hypothesis testing with multiple linear. The result of this study indicates that the governance structure of the BPR, which is proxied by the size of boards of directors and the number of board of commissioners has a positive and significant effect on ROA, meanwhile managerial ownership does not have a significant effect on ROA. This research is important for company management to continue implementing GCG in the system, especially for the board of commission to improve company performance. For future research, it is expected to be able to increase proxies and examine areas that have never been studied.