This study aims to examine the influence of Corporate Governance and risk management on financial performance at Sharia Commercial Banks (BUS). Corporate Governance is measured using GCG (Good Corporate Governance) composite ratings and risk management is measured using NPF (Net Performing Financing), BOPO (Operating Expenses to Operating Income), and FDR (Financing to Deposit Ratio) ratios. While financial performance is measured using the ratio of ROA (Return on Assets) and ROE (Return on Equity). The sampling technique in this study uses the purposive sampling method with the type of data used is secondary data. The total research sample is 11 Islamic commercial banks registered on the Financial Services Authority (OJK) website with an observation year of 2018-2022. The data analysis technique used in this study uses PLS-SEM (Partial Least Square-Structural Equation Modeling) and multiple regression with the help of SmartPLS application version 4. The results of this study show that corporate governance partially has a positive and significant effect on financial performance and risk management partially has a negative and significant effect on financial performance. While simultaneously corporate governance and risk management have a significant effect on financial performance.
Copyrights © 2024