Hubungan Mekanisme Corporate Governance Dan Kinerja Keuangan Pada Bank Pembiayaan Rakyat Syariah di Indonesia

Abstract

The aimed of the study finds the empirical evidence about the correlation of corporate governance toward financial performance of Islamic rural bank (Bank Pembiayaan Rakyat Syariah/BPRS). As a regulated industry, this study wants to prove that the financial performance of Islamic rural banks has a positive relationship with corporate governance mechanisms. The samples are 97 Islamic rural banks in Indonesia periode 2011-2012. Corporate governance mechanisms is measured by independent board, board of directors, managerial ownership and institutional ownership. Financial performance is measured by financial ratios i.e. NPF, CAR, FDR, ROA and ROE. The hypothesis was tested by chi-square test. This study found that the board of directors is positively related to the ability to cope with the level of non-performing loans (NPF), managerial ownership is positively related to the achievement of profitability in terms of utilization of assets and equity (ROA and ROE), as well as institutional ownership is positively related to the achievement of profitability in terms of utilization equity (ROE).