INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE)
Vol. 1 No. 11 (2025): INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE)

ANALYSIS OF THE INFLUENCE OF CORPORATE GOVERNANCE ON INVESTMENT EFFICIENCY OF PUBLIC COMPANIES IN INDONESIA

Gunawan Widjaja (Fakultas Hukum Universitas 17 Agustus 1945 Jakarta)



Article Info

Publish Date
17 Feb 2026

Abstract

Good Corporate Governance is a process that regulates and controls a company in improving its business by paying attention to stakeholders to achieve company goals. The application of good corporate governance principles within a company can improve the company's financial performance and make the company free from fraud and can increase the trust of stakeholders and the public. The problem that companies often face is a lack of professionalism in running a company. Implementation of Good Corporate Governance cannot be separated from talking to companies that have valid legal entities in accordance with the provisions of the Law. The higher the investment efficiency, the more efficient the use of cash or company assets in making an investment, so it can be said that the more efficient investment is made, the higher the impact on cash flow. Corporate Governance influences the investment efficiency of public companies in Indonesia as measured by ROA and ROE. The research results which show that there is a positive influence of GCG on financial performance (ROA and ROE) can be interpreted as meaning that the better the implementation of GCG in a company can result in the company's operational activities being more effective and efficient, which in turn will increase financial performance.

Copyrights © 2025






Journal Info

Abbrev

IJEFE

Publisher

Subject

Economics, Econometrics & Finance

Description

INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE) is a scientific journal that publishes articles in the field of Business and finance that contain conceptual ideas in the fields of Economics, Accounting, Management, Business and finance. The scope is Human Resource Management, Marketing ...