The Effect of GCG and Leverage on Financial Performance: Evidence from Construction Firms

Sultan Aldo; Hasim As'ari

doi:10.58777/rbm.v1i2.58

Authors

Sultan Aldo Faculty of Economics, Mercu Buana University Yogyakarta
Hasim As'ari Faculty of Economics, Mercu Buana University Yogyakarta

DOI:

https://doi.org/10.58777/rbm.v1i2.58

Keywords:

GCG, Leverage, Financial Performance, Commissioner, Construction Sector

Abstract

This study aims to investigate the impact of GCG (Governance Code Guidelines) and leverage on the financial performance of construction and building firms listed on the Indonesia Stock Exchange between 2018 and 2021. The research involved 22 firms in the building construction sector, and data collection utilized a purposive sampling method to examine eight selected firms. The analysis method employed was Multiple Linear Regression. The findings indicate that the Independent Board of Commissioners has no significant effect on financial performance, whereas GCG (Board of Directors) negatively influences Financial Performance. Additionally, Leverage (DER and DAR) impacts Financial Performance. Firm management can use GCG and leverage as strategic tools to enhance financial performance and communicate this information to the market. Firms implementing good corporate governance and showcasing concern for the environment can receive incentives or reputation benefits from the community, which can further improve their financial performance

References

Aiman, Rizaldi & Sri Rahayu. (2019). Pengaruh Good Corporate Governance, Leverage Terhadap Kinerja Keuangan (Studi Kasus Pada Bank Umum Swasta Nasional Dan Bank Usaha Milik Negara Yang Terdaftar Di Bursa Efek Indonesia 2014-2017). E-Proceeding of Management 6(2).

Albart, N., Sinaga, B., Santosa, P. W., & Andati, T. (2020). The effect of corporate characteristics on capital structure in Indonesia. Journal of Economics, Business, and Accountancy Ventura, 23(1), 46–56. https://doi.org/10.14414/jebav.v23i1.2153

Anandamaya, L. P. V., & Hermanto, S. B. (2021). Pengaruh Good Corporate Governance , Ukuran Perusahaan dan Leverage terhadap kinerja Keuangan Perusahaan. Jurnal Reviu Akuntansi Dan Keuangan, 4(1). https://doi.org/10.22219/jrak.v4i1.4931

Anandamaya, L. P. V., & Hermanto, S. B. (2021). Pengaruh Good Corporate Governance, Ukuran Perusahaan dan Leverage terhadap kinerja Keuangan Perusahaan. Jurnal Reviu Akuntansi Dan Keuangan, 4(1). https://doi.org/10.22219/jrak.v4i1.4931

Anastasya, S., & Hidayati, C. (2019). Analisis Rasio Keuangan Dan Common Size Untuk Menilai Kinerja Keuangan Perusahaan Kosmetik Dan Peralatan Rumah Tangga Yang Terdaftar Di Bursa Efek Indonesia Tahun 2013-2015. Jurnal Ekonomi Akuntansi, 4(2), 51–66. https://doi.org/10.30996/jea17.v4i02.3304

Chee Yoong, L., Alfan, E., & Devi, S. S. (2015). Family Firms, Expropriation and Firm Value: Evidence from Related Party Transactions in Malaysia. The Journal of Developing Areas, 49(5), 139–152. https://doi.org/10.1353/jda.2015.0048

Forte, R., & Tavares, J. M. (2019). The relationship between debt and a firm’s performance: the impact of institutional factors. Managerial Finance, 45(9), 1272–1291. https://doi.org/10.1108/MF-04-2018-0169

Hantono, H. (2021). Pengaruh Rasio Likuiditas, Leverage, Komite Audit terhadap Kinerja Keuangan pada Perusahaan Barang Konsumsi yang terdaftar di Bursa Efek Indonesia. Jurnal Audit dan Perpajakan (JAP), 1(1), 12–26. https://doi.org/10.47709/jap.v1i1.1165

Harisyara, R. R. C. (2021). Pengaruh Good Corporate Governance dan Leverage terhadap Kinerja Keuangan (Studi pada Perusahaan Manufaktur yang terdaftar di BEI). Jurnal Riset Akuntansi Dan Manajemen Malahayati, 11(4). https://doi.org/10.33024/jrm.v11i4.6921

Hermawan, D., Setiawan, S., & Eka, P. C. (2022). Dampak Karakteristik Dewan Direksi terhadap Kinerja Keuangan pada Perusahaan Kriteria Syariah Sektor Perdagangan, Jasa, dan Investasi. Ekonomi, Keuangan, Investasi Dan Syariah (EKUITAS), 4(2), 576–582. https://doi.org/10.47065/ekuitas.v4i2.1868

Intia, L. C., & Azizah, S. N. (2021). Pengaruh Dewan Direksi, Dewan Komisaris Independen, Dan Dewan Pengawas Syariah Terhadap Kinerja Keuangan Perbankan Syariah Di Indonesia. Jurnal Riset Keuangan Dan Akuntansi, 7(2), 46–59. https://doi.org/10.25134/jrka.v7i2.4860

Leatemia, E. M., Mangantar, M., Rogi, M. H., Ekonomi, F., Manajemen, J., & Ratulangi, U. S. (2019). Pengaruh Corporate Governance Terhadap Kinerja Keuangan Pada Perusahaan Textile Dan Garmen Yang Terdaftar Di Bursa Efek Indonesia Periode 2013-2017. Jurnal EMBA : Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 7(3), 4339–4348. https://doi.org/10.35794/emba.7.3.2019.25085

Lutfi, A. M., & Sunardi, N. (2019). Pengaruh Current Ratio (CR), Return On Equity (ROE), Dan Sales Growth Terhadap Harga Saham Yang Berdampak Pada Kinerja Keuangan Perusahaan (Pada Perusahaan Manufaktur Sektor Makanan dan Minuman Yang terdaftar di Bursa Efek Indonesia). Jurnal SEKURITAS (Saham, Ekonomi, Keuangan Dan Investasi), 2(3), 83. https://doi.org/10.32493/skt.v2i3.2793

Monica, S., & Dewi, A. S. (2019). Pengaruh Kepemilikan Institusional dan Dewan Komisaris Independen terhadap Kinerja Keuangan di Bursa Efek Indonesia. INA-Rxiv, 1–15. https://doi.org/10.31227/osf.io/cqj4a

Ningsih, S., & Utami, W. B. (2020). Pengaruh Operating Leverage dan Struktur Modal terhadap Kinerja Keuangan pada Perusahaan Go Publik Sektor Property Dan Real Estate. Jurnal Akuntansi Dan Pajak, 20(2). https://doi.org/10.29040/jap.v20i2.754

Nurhidayah, V. (2020). Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Pada Perbankan Di BEI. Prisma (Platform Riset Mahasiswa Akuntansi), 01(02), 132–142. https://ojs.stiesa.ac.id/index.php/prisma/article/view/426

Pura, B. D., Hamzah, M. Z., & Hariyanti, D. (2018). Analisis Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Perbankan yang Terdaftar di Bursa Efek Indonesia Periode 2014-2017. Seminar Nasional Cendekiawan, 4, 879–884. https://doi.org/10.25105/semnas.v0i0.3355

Ritonga, S. A., Effendi, I., & Prayudi, A. (2021). Pengaruh Struktur Modal Terhadap Kinerja Keuangan Perusahaan Consumer Goods di BEI. Jurnal Ilmiah Manajemen dan Bisnis (JIMBI), 2(2), 86–95. https://doi.org/10.31289/jimbi.v2i1.383

Rode, C. D., & Dewi, A. S. (2019). Pengaruh Good Corporate Governance Dan Leverage Terhadap Kinerja Keuangan Perbankan Yang Terdaftar Di Bursa Efek Indonesia. Preprints 1–12. https://doi.org/10.31219/osf.io/rn6cs

Santosa, P. W., Budiantoro, H., & Zuzryn, A. S. (2022). The Moderating Role of Firm Size on Relationship between Majority Ownership and Debt Policy of Property Sector. Jurnal Manajemen, 26(2), 315–330. https://doi.org/10.24912/jm.v26i2.932

Santosa, P. W., Rahayu, S. I., Simon, Z. Z., & Tambunan, M. E. (2021). The moderating role of audit quality and firm size in the effect of corporate governance on related party transactions: Evidence from Indonesia. Investment Management and Financial Innovations, 18(4), 166–176. https://doi.org/10.21511/imfi.18(4).2021.15

Santosa, P. W., Setianingrum, A., & Yusuf, C. (2022). Corporate governance and leverage on firm value : Evidence of Indonesian large firms. Jurnal Keuangan Dan Perbankan, 26(4), 862–873. https://doi.org/10.26905/jkdp.v26i4.7764

Setiawan, H. (2020). The environmental performance, environmental accounting, and agency cost impact company performance? (A case study of regional water companies in Indonesia). International Journal of Contemporary Accounting, 2(1), 39–58. https://www.trijurnal.lemlit.trisakti.ac.id/ijca/article/view/6319

Ri, R. (2020). Pengaruh Kepemilikan Asing Dan Leverage Terhadap Kinerja Keuangan. BALANCE: Jurnal Akuntansi Dan Bisnis, 5(1), 64–70. https://doi.org/10.32502/jab.v5i1.2459

Sibuea, P. I., & Setiawati, L. W. (2021). Analisis Pengaruh Komite Audit, Dewan Komisaris Independen Dan Intensitas Aset Biologis Terhadap Kinerja Keuangan Pada Perusahaan Agriculture Yang Terdaftar Di Bursa Efek Indonesia Tahun 2015 – 2019. Jurnal Akuntansi, 4(1), 298–318. https://doi.org/10.31575/jp.v4i1.220

Wathni D.N, M. (2021). Pengaruh Good Corporate Governancedan Leverageterhadap Kinerja Keuangan Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017 –2019. JAKP: Akuntansi, Keuangan dan Perpajakan, 4(1), 1–62. https://doi.org/10.51510/jakp.v4i2.762