Track: Business Management

Abstract

The banking industry has a very important role as a driving force for a country’s economy, including in Indonesia. This research was carried out to test the influence of  Corporate Governance Mechanism on Financial Performance in the state-owned banks on the Indonesia Stock Exchange (IDX) in 2010-2020. This research used a quantitative approach with panel data regression analysis method. The independent variables in this study are Board of Directors, Remuneration Committee, and Risk Monitoring Committee. While the dependent variable in this study is financial performance (ROA). The results showed that simultaneously Board of Directors, Remuneration Committee, and Risk Monitoring Committee had a significant effect on Financial Performance.  Partially, Remuneration Committee, and Risk Monitoring Committee have no effect on Financial Performance, while Board of Directors has an impact on financial performance.

Keywords
Board of Directors, Remuneration Committee, Return on Assets (ROA), Risk Monitoring Committee