EFFECT OF IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE (GCG) TO RETURN ON ASSETS (ROA), RETURN ON EQUITY (ROE), EARNING PER SHARE (EPS) AND NET PROFIT MARGIN (NPM) (Studies in Banking Companies Listed on the Stock Exchange Year 2011 to 2015)

Abstract

This study research to determine the effect of the application of Good Corporate
Governance (GCG), which is measured through the board of commissioners , the size of
the independent commissioners and audit committee effect on ROA, ROE, NPM and EPS
in banking companies listed on the Stock Exchange in 2011-2015. The method used is
empirical study with the research approach is descriptive method using secondary data.
Sampling technique used is purposive sampling. The statistical analysis used in this study
is the classical assumption test, regression analysis, hypothesis testing using t test, f test
and the coefficient of determination. Samples used in this study is 15 companies for five
years with the source of the data obtained through www.idx.co.id. The results showed
that the simultaneous application of Good Corporate Governance (GCG), which is
measured through the board of commissioners , the size of the independent
commissioners and audit committee effect on ROA, ROE, NPM and EPS are shown by
test results f 0,000 <0,05 to ROA; 0.001 <0.05 for ROE; 0,014 <0,005 for the NPM and
0,000 <0.05 for EPS.
Keywords: Good Corporate Governance, ROA, ROE, NPM, and EPS