Does corporate governance affect bank profitability? Evidence from Indonesia

  • Abdul Wahab Politeknik Lp3i, Makassar
Keywords: Board of Commissioners Size, Managerial Ownership, Audit Committee, Company Size, Profitability

Abstract

This study aims to empirically assess the effect of corporate governance on profitability in the banking industry listed on the Indonesia Stock Exchange. This research is quantitative. Withdrawal of research hypotheses using agency theory supported by previous studies with the same variables. The research object is the Banking Industry listed on the Indonesia Stock Exchange. Research variables include Board of Commissioners Size, Managerial Ownership, Audit Committee, Company Size and Profitability. The type of data used is secondary data in the form of annual financial reports of banking companies listed on the Indonesia Stock Exchange during the period 201-8-2020 published by the Indonesian Capital Market Directory (ICMD) and IDX Statistics through the IDX Investment Gallery, Faculty of Economics, Muslim University of Indonesia and the website. Official Indonesian Stock Exchange. The data analysis method used is descriptive statistical analysis, classical assumption test consisting of (normality test, heteroscedasticity test, multicollinearity test, autocorrelation test) and testing all hypotheses through the partial test, simultaneous test and coefficient of determination test. The results showed that the size of the board of commissioners and managerial ownership partially had a positive and insignificant effect on profitability. The Audit Committee has a negative and insignificant effect on profitability. In comparison, the company's size positively and significantly affects profitability.

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Published
2022-08-31
How to Cite
Wahab, A. (2022). Does corporate governance affect bank profitability? Evidence from Indonesia. Point of View Research Management, 3(3), 330 - 346. Retrieved from http://journal.accountingpointofview.id/index.php/POVREMA/article/view/228
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Articles