The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX)

Rico Wijaya. Z; Abdul Rohman; Zulaikha

Article Details

Research Article Volume 13 Issue 01

The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX)

Rico Wijaya. Z • Abdul Rohman • Zulaikha

Published: 03 Oct 2018 Issue:Volume 13 Issue 01 Oct 2018 Author details below

Zulaikha

Diponegoro University, Indonesia

Corporate Governance financial performance Institutional Share Ownership Net Working Capital Turnover Return on Equity Indonesia Stock Exchange

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Abstract

Research summary

The purpose of this study is to test empirically and analyze the relationship of good corporate governance principles in proxies with total institutional shareholdings (INSTITUSI), number of commissioners (KOMISARIS), number of joint meetings of board of commissioners (RAPAT), and number of company committees (KOMITE) against Return on equity (ROE) and analyze the role of mediating the concept of net working capital turnover (NWCT). This research was conducted in Indonesia Stock Exchange period (2010-2014) at manufacturing companies. The calculation of total samples obtained is 185 samples of company data (for 5 years) in the manufacturing period (2010-2014). After evaluating the outlier data, there are seventeen (17) outlier data issued based on outlier evaluation, the number of samples from 185 to 168 data.

In general, there are three main results of the study. First, the results show that INSTITUSI, RAPAT, and KOMITE have a significant positive effect on NWCT; only KOMISARIS variable is not proven. Second, based on the result of research, INSTITUSI, KOMITE and NWCT variables have a significant positive effect on ROE, while RAPAT and KOMISARIS are not proven. Thirdly, based on the result of mediation test by using Sobel test result, only NWCT is proven to mediate RAPAT relation to ROE, while in the other variables, mediations are not proven.

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Published 03 Oct 2018

How to Cite

Z, R. W., Rohman, A., & Zulaikha. (2018). The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX). Journal of Business and Retail Management Research, Volume 13 Issue 01.

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APA

Z, R. W., Rohman, A., & Zulaikha. (2018). The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX). Journal of Business and Retail Management Research, Volume 13 Issue 01.

MLA

Z, Rico Wijaya., et al.. "The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX)." Journal of Business and Retail Management Research, Volume 13 Issue 01, 2018.

Chicago

Rico Wijaya. Z, Abdul Rohman, and Zulaikha. "The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX)." Journal of Business and Retail Management Research Volume 13 Issue 01 (03 Oct 2018).

Harvard

Z, R. W., Rohman, A., & Zulaikha (2018) The effect of good corporate governance on financial performance and net working capital turnover as a mediation variable: evidence from Indonesia Stock Exchange (IDX). Journal of Business and Retail Management Research, Volume 13 Issue 01

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