Corporate Governance on Profitability of State-Owned Companies

Wraspati Yuni Susanti, Yunus Harjito, Faiz Rahman Siddiq

Abstract


Profitability is always interesting to use as a basis for determining decisions related to financial policies to be taken. Deeply rooted profitability can be used as a sensor for the achievement of company performance, especially in financial performance. This study aims to prove whether corporate governance in state-owned companies can affect profitability. The corporate governance used is detailed with the proxies used in this study using the board of directors, independent board of commissioners, and audit committee. The study took data on BUMN companies listed on the Indonesia Stock Exchange with coverage from 2016 to 2022 which included an initial number of 34 BUMN companies, but companies that met the criteria were 19 BUMN with a total of 133 data but there were 19 outlier data to obtain data that met the test requirements, so that the data processed in this study was 144 data. The results showed that the audit committee proved to have a significant effect on profitability. However, it is surprising that the results of this study failed in proving the influence of the board of directors and the independent board of commissioners on profitability

Keywords


Corporate Governance, Profitability, independent board, audit committe

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