The Effect of Good Corporate Governance (GCG) Implementation on Financial Performance of Pharmacy Sub-Sector Goods and Consumption Sector Industries Listed in the Indonesia Stock Exchange of 2017-2019

Abstract

The study aimed to examine the effect of good corporate governance (GCG) implementation on financial performance of pharmacy sub-sector goods and consumption sector industries listed in the Indonesia Stock Exchange of 2017-2019. The factor examined in the study was the good corporate governance mechanism, i.e., managerial ownership, institutional ownership, independent commissioner, and audit committee as the independent variables and financial performance measured by Return on Asset (ROA) as the dependent variable. The method used was quantitative descriptive method from 2017-2019. The analysis equipment utilized was multiple linear regression. The study results show that managerial ownership did not significantly affect financial performance, institutional ownership significantly affected financial performance, independent commissioner did not significantly affect financial performance, and audit committee significantly affected financial performance.