ANALISIS PENGARUH GCG (GOOD CORPORATE GOVERNANCE) TERHADAP KINERJA KEUANGAN UMKM PADA BURSA EFEK INDONESIA

This study analyzes the impact of Good Corporate Governance (GCG) on the financial performance of small and medium enterprises (SMEs) listed on the Indonesia Stock Exchange, focusing on the roles of independent commissioners, audit committees, managerial ownership, and institutional ownership. Using data from 2021 to 2023, the study finds that independent commissioners significantly enhance financial performance, particularly by increasing accountability and effective oversight. In contrast, audit committee meetings and institutional ownership do not show a significant impact, suggesting limited influence on financial metrics like Return on Assets (ROA). Managerial ownership demonstrates a negative effect, potentially due to conflicts of interest common in SME management structures. The research concludes that while certain GCG practices are beneficial, areas such as audit committee function and managerial ownership require improvements to fully support the financial growth and governance standards for Indonesian SMEs.