THE EFFECTS OF FINANCIAL AND GOOD CORPORATE GOVERNANCE FACTORS TOWARDS COMPANY'S PERFORMANCE IN PROPERTY INDUSTRY

Abstract

This research is conducted to investigate the effects of financial factors and good corporate governance factors towards company performance. In conducting this, the researcher would use property companies that are listed in IDX period of 2014-2017. This uses quantitative research method and uses a secondary data from 5 property companies that has the biggest amount of total assets. The independent used here are gross profit, operational profit, net profit, revenue, total liabilities, total equity, total asset, total BOD, and total audit committee. The dependent variable is ROA. Stata is also used as the statistical tool to process the raw data and hypothesis testing. To see whether the variables have positive or negative effects, the researcher is using multiple regression analysis. From the result, the researcher could see that the variables that have significant effect towards ROA are net profit and total liabilities. With net profit affecting ROA positively, and total liabilities affecting ROA negatively. While, gross profit, operational profit, revenue, total equity, total asset, total BOD, and total audit committee does not have significant effect towards ROA. The result of this analysis shows that the predictive ability of the nine independent variables in adjusted R2 is 98.41%, while the rest 1.59% is influenced by other factors that are not stated in this research.