Abstract:
This research examines the influence of corporate governance toward corporate
performance, in this case market performance and financial performance. The
rating of corporate governance perception index (CGPI) for 2008 until 2010
by The Indonesian Institute for Corporate Governance is used to measure the
corporate governance implemen tation and Tobin’s Q as a market performance
measurement with Return on Equity (ROE) and Return on Assets (ROA) as
financial performance measurement. The control variables used are leverage,
age, type of industry and size of firm. This study is causal research which
companies that scored CGPI and financial statement during 2008-2010 were
drawn using purposive sampling method. Research data are pooling data which
combines time series and cross sectional data during the observation period
2008-2010. This research employs a multiple regression to test hypothesis that
corporate governance and corporate performance are positively related.
From the first regression equation, the result of this study shows that there
is influence between corporate governance perception index and market
performance (Tobin’s Q) during crisis while the control variables have no
effect on market performance unless leverage levels negatively affect the
market performance of the company during the global economic crisis. The
second regression equation shows that there is influence between corporate
governance perception index and financial performance (ROE) during crisis
while the control variables have no effect on financial performance (ROE). The
third regression equation shows that there has no influence between corporate
governance perception index (CGPI) and the control variables to financial
performance (ROA) during the global economic crisis 2008-2010.
Keywords :
corporate governance, Tobin’s Q value, return on equity, return on assets,
leverage, age of firm, size of firm, type of industry
