The Effect of Corporate Governance on the Financial Performance of Pharmaceutical Sector Companies Listed on the Indonesia Stock Exchange

Abstract

The purpose of this study was to determine the effect of corporate governance as measured by the Board of Commissionaire (BOC), Audit Committee (AC), Management (MANJ) and Shareholder (SH) on financial performance with the object of the pharmaceutical sector. This type of research is descriptive quantitative. The research population was 12 pharmaceutical sector companies, purposive sampling technique where the criteria were pharmaceutical sector companies that published complete financial reports from 2010-2021 so that the sample used was 108 data. The data used is secondary data with data collection through documentation. Data analysis using multiple linear regression. The results of this study are corporate governance in the dimensions of the Board of Commissionaire and Audit Committee has a significant positive effect on financial performance, corporate governance in the dimensions of Management and Shareholder has an insignificant positive effect on financial performance.