PERAN KUALITAS CORPORATE GOVERNANCE TERHADAP MODEL HUBUNGAN STRUKTUR KEPEMILIKAN, KARAKTERISTIK PERUSAHAAN DENGAN KINERJA PERUSAHAAN

Abstract

The paper aims to examine the role of the quality of corporate governance on relationship
ownership structure, firm characteristic to performance and risk.  This research used companies
which are listed on Indonesia Stock Exchange and included Indonesian Most Trusted Companies
in 2008 - 2012 as the samples. The sampling procedure used purposive sampling. The method
analysis used multiple regressions.The results showed that the institutional ownership positively
affect  on the firm performance and negatively effects on risk.The company characteristics that
positively affects on performance is liquidity, profitability, firm size, and the solvency negatively
affect on performance. When associated with business risk, profitability and sales growth
positively effect on the risk and size of the company negatively affects on risk. The industry type  negatively affects on performance and positively effects on risk. The quality corporate positively
effects on performance, and negatively effects on risk but not significant. These findings suggest
that the quality of corporate governance is an incremental information and complementary
function relating to the performance and risk.The debate on the relation between company
characteristic and a firm’s performance or risk  needs to take directly into account the role of
moderation and/or mediation of the corporate governance. This paper promotes, as an aim for
future research, a verification of the validity of this model.      
 
Keywords : quality of corporate governance, ownership structure, firm characteristic,                                         performance, and risk