The Impact of Good Corporate Governance and Corporate Social Responsibility toward the Company Performance (Case Study on Mining Company Which Recorded in BEI Period of 2012-2014)

Published: 18 July, 2016

Kusuma, Anggraini Nur. 2016. The Impact of Good Corporate Governance and Corporate Social Responsibility toward the Company Performance (Case Study on Mining Company Which Recorded in BEI Period of 2012-2014). Undergraduate Thesis, Accounting Department, Faculty of Economics, Malang State University. Advisor: (I) Sulastri, S.Pd., M.SA, (II) Dr. Cipto Wardoyo, M.Pd., M.Si., Ak, CA.

Keywords: Good Corporate Governance, Corporate Social Responsibility, Company Performance

Company performance is the company’s ability to manage its business and used as a measure of success in achieving the objectives of the company. To increasing work performance of company, there are some non-financial factors which must be considered. This non-financial factor consist of good corporate governance and corporate social responsibility.
This research is to find out the influence of good corporate governance and corporate social responsibility towards on the company’s performance. This research is using purposive sampling method which makes the result of this research cannot be generalized and only valid for companies that became the research sample. The samples of this research are 31 mining companies that registered in Indonesia Stock Exchange period of 2012-2014 and fulfill the criteria which have been determined. Testing of variable in this research is using multiple linear regression mode with 5% level signification. The data that used in this research is secondary data which obtained from annual financial report of company that published consistently during period of 2012-2014.
The result of statistical test shows that (1) institutional ownership hasn’t impact for company’s performance (2) audit committee hasn’t impact for company’s performance, and (3) corporate social responsibility has a positive impact for company’s performance. Some suggests that could be provided (1) the investor of mining company have to notice closely the GCG aspect and CSR disclosure as considered in their invest. (2) the company will be able to execute the principle of GCG consistently, so it is expected can produce the credibility of public and increase the work performance of company (3) in the next research, hopefully can expand other variables that also supports the implementation of good corporate governance, using longer period for the research, expanding the profitability ratio types of proxy for measuring the company’s work performance and also extending the sector of company, so that can produce more accurate research and can give a contribution to the company’s research.

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