The Effect Of Good Corporate Governance Mechanisms On National Banking Performance: A Study Of Banking Companies Listed On The Indonesia Stock Exchange (Idx) For The Period 2021-2024

Abstrak

This study analyzes the influence of Good Corporate Governance (GCG) mechanisms on the performance of national banking companies listed on the Indonesia Stock Exchange (IDX) for the 2021-2024 period. The objective of the study is to identify the influence of the Board of Directors, Board of Commissioners, Audit Committee, Institutional Ownership, and Managerial Ownership on banking performance. The methodology uses a quantitative approach with multiple linear regression analysis on 23 banking companies selected using purposive sampling. Secondary data were obtained from financial and annual reports for the 2021-2024 period. The main findings indicate that the Board of Directors has a significant positive effect (Sig. 0.007), the Board of Commissioners has a significant negative effect (Sig. 0.044), while the Audit Committee, Institutional Ownership, and Managerial Ownership have no significant effect on ROA. The novelty of the study lies in the paradoxical finding that increasing the number of commissioners actually decreases banking performance, challenging the conventional assumption that "more supervision is better