THE ANALYSIS OF FINANCIAL PERFORMANCE & GOOD CORPORATE GOVERNANCE IN COSMETIC INDUSTRY

Abstract

This research is focused on the comparison between Financial Performance and Good Corporate Governance (GCG) implementation between Indonesia and international cosmetic company. Therefore, this research emphasis on one main research question which is "What is the influence of Financial Performance & Good Corporate Governance in Cosmetic Industry?”. In order to answes the main question, this research analyse ten (10) hypothesis related to the influence of Climate Changes Awareness; Net Sales; Total Employees; Total Board of Directors (BOD); and Big 4 Public Accounting Firms that respresent as GCG variables; towards Return on Assets (ROA) and Return on Equity (ROE) as the measurement of financial performance in cosmetic industry. This research uses quantitative method with the secondary data that taken from annual report of two (2) lndonesia cosmetic company and two (2) international cosmetic company during 2016-2017. This research uses Panel data Generalized Least Squares Regression by STATA M64. The results show that Total Employee has positive influence towards financial performance of cosmetic industry. However, GCG measurement that related to Climate Changes Awareness, Net Sales, Total BOD, and Big 4 Public Accounting Firms have negative influence towards financial performance of cosmetic industry.