THE EFFECT OF GOOD CORPORATE GOVERNANCE ASSESSMENT ASPECTS ON THE HEALTH LEVEL OF STATE-OWNED ENTERPRISES

Abstract

Introduction/Main Objectives: The study aims to determine the effect of the implementation of Good Corporate Governance (GCG) with variable aspects of GCG assessment on the performance of companies and subsidiaries of State-Owned Enterprises (SOEs) which is measured as the Company's Health Level. Background Problems: GCG is related to the Company's Health Level, because the success of achieving targets and company performance will depend on good management of company resources. Novelty: 6 (six) aspects of GCG assessment become independent variables while the Company's Health Level is the dependent variable. Research Methods: Research is descriptive statistics with quantitative, deductive, explanatory and confirmatory approaches to test the causality of the relationship. Finding/Results: From the research, it was found that aspects of shareholders, board of commissioners and practices of GCG implementation have an influence on the Company's Health Level, while aspects of commitment to sustainable GCG implementation, directors and information disclosure and transparency have not had an influence on the Company's Health Level. Conclusion: The implementation of GCG has not had a significant influence on the Company's Health Level, as evidenced by the high average score per aspect of GCG assessment, but the average score of the Company's Health Level is not too high and has not achieved very satisfactory results.

Keywords: Good Corporate Governance (GCG), Agency Theory, Stakeholders Theory, Corporate Health Level (TKP), GCG Assessment, State-Owned Enterprises (SOEs), General Meeting of Shareholders (GMS).