Does Good Corporate Governance Influence Banking Performance in Indonesia?

Diana Riyana Harjayanti (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)
Vani Lusiana (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)
Reza Octovian (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)
Ifa Nurmasari (Fakultas Ekonomi dan Bisnis, Universitas Pamulang)
Mira Falatifah (Fakultas Bisnis dan Komunikasi, Swiss German University)

Jurnal Mandiri
Vol 10 No 1: Juni 2026

This research aims to determine influence Good Corporate Governance (GCG) on financial performance in banking sector companies listed on the Indonesian for the period 2019 - 2024. The present study uses GCG variables, such the Board of Director, Independent Board of Commissioner, and Audit Committee for regression analysis using Return on Assets (ROA) ratio as financial performance. The empirical findings indicate with significance level on 0,05 that the Board of Directors negative significant influence on ROA. In contrast, the Independent Board of Commissioners has positive insignificant and the Audit Committee exhibit negative insignificant individual influence on ROA. Nevertheless, the three governance variables jointly influence on ROA, with an adjusted R² of 69.2582%, suggesting that the proposed model contribute substantial proportion of the variation in banking financial performance.