Influence of Internal Audit and Good Corporate Governance on Financial Performance of Banking Companies

(Empirical Study on Banking Companies Registered in The Indonesian Securities Exchange (IDX) 2013, 2015)

Abstract

Abstract. The financial performance of the company is a description of the financial
condition of a company in a certain period. For the company, improving financial
performance is a must so that the company's shares remain attractive to investors. The
financial statements published by the company are a reflection of the company's financial
performance. The financial performance of a company can produce a financial information
which can be used by users for investment decision making. This study uses secondary
data, hence called secondary data analysis. The secondary data is using data already
available in government agencies or using data obtained from the internet www.idx.com,
www.sahamok.com. The sample is 111 companies for three years (2013-2015) taken by
purposive sampling. The research variables consist of dependent variable that is internal
audit and good corporate governance and independent variable that is financial
performance. Data analysis used in this research is multiple regression analysis. Hypothesis
shows the result that internal audit variable and good corporate governance have
simultaneous effect to financial performance of banking company listed in BEI year 2013
until 2015. Internal audit variable has influence value equal to 20,4% and good corporate
governance variable have influence value equal to 8,1 %. While the results of the influence
of internal audit variables and good corporate governance together have an influence value
of 28.5%. In that case the internal audit variable and good corporate governance have a
very strong influence on the financial performance of banking companies.

Keywords : internal audit, good corporate governance, corporate banking financial
performance