This study aims to analyze the correlation of good corporate governance mechanism on the financial performance of banking sector. Financial performance is calculated by using CFROA, meanwhile the good corporate governance mechanism determined by variable board of commissioner, board of director, institutional ownership, managerial ownership, independent board, and the audit committee. The sample in this study were banking sector companies listed in Indonesian Stock Exchange (IDX) in the period 2011-2013. The number of sample used were 14 companies listed were taken by purposive sampling. The method of analysis of this research used multi regression with SPSS 20 Program. The result of this research showed that board of commissioner, managerial ownership, independent board, and the audit committee had negative and not significant influence to financial performance meanwhile board of director and institutional ownership had positive and significant influence to financial performance.Keywords: good corporate governance, CFROA, board of commissioner, board of director, institutional and managerial ownership.
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