THE IMPACT OF GOOD CORPORATE GOVERNANCE (GCG) AND FIRM SIZE TOWARD FINANCIAL PERFORMANCE (FP) ON BANK (BUKU 3) IN INDONESIA

Abstract

This study is about to know the impact of Good Corporate Governance (GCG) and firm size toward bank profitability. To measure GCG, this study uses sub-variables: managerial ownership (MAN), institutional ownership (INT), independent commissioner (IND), and audit committee (AUD). In this study the bank profitability is represented by Earning Per Share (EPS). This study used multiple regression analysis method and take Bank BUKU 3 in Indonesia as the sample. The results of this study indicate that managerial ownership (MAN) has no significant effect on EPS, institutional ownership (INT) has a significant effect on EPS, independent commissioner (IND) has a significant effect on EPS, audit committee (AUD) has no significant effect on EPS, and firm size significant effect on EPS. Simultaneously, those independent variables have a significant effect toward EPS.