INFLUENCE OF PRINCIPLES OF GOOD CORPORATE GOVERNANCE ON THE PERFORMANCE OF VILLAGE CREDIT INSTITUTIONS IN THE SERIRIT SUB-DISTRICT, BULELENG REGENCY

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Desak Ayu Sriary Bhegawati
Ni Putu Yuria Mendra

Abstract

Good Corporate Governance is a corporate governance system that serves as a control tool to regulate the structure and mechanism of the company in theso that it can be efficient and perform. GCG practices can increase company value by increasing learning and growth. This study aims to determine the effect of the principles of Good Corporate Governance on the performance of Village Credit Institutions in Seririt District, Buleleng Regency. Proxies used to measure GCG are GCG principles consisting of transparency, accountability, responsibility, independence and fairness. The number of samples used in this study were 15 LPD with 45 respondents. Determination of the sample using Purposive Sampling with data collection methods using a questionnaire. Purposive sampling is atechnique with certain considerations. The analysis technique used is multiple linear regression, and previously tested instruments and classic assumption tests, multiple linear regression and good ness of fit. Based on the results of hypothesis testing, it is known that the principles of Good Corporate Governance: responsibility and fairness have a positive effect, while transparency, accountability, and independence do not affect the performance of the LPD in Seririt District, Buleleng Regency.

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