Corporate Governance and Companies Performance: Comparison Between Indonesian Companies and Multinational Companies In Indonesian Capital Market
KUNTOWIJOYO NOTOKUSUMO (Pembimbing: Ertambang Nahartyo, Ph.D.), Ertambang Nahartyo, Ph.D.
After the economy crisis struck the Asia Pacific region in 1998, the Indonesian government issued the Code of Corporate Governance to prevent the same thing from happening again. The latest edition of this code was issued in 2006; it is proven that company who apply the Good Corporate Governance practices in their management will get more benefit than that who do not implement Good Corporate Governance. This research tries to analyze the effect of the Indonesian Code of Corporate Governance on companies that listed in Indonesian Capital Market (IDX). Furthermore, this research also compares the multinational and national companies performance in the market. The result shows that after the issuance of the code, the performance of Indonesian companies is improved. However, the multinational companies performance is better than national companies performance. When the recent crisis struck in 2008, multinational companies performance is more stable than national companies performance.
Kata Kunci : Corporate Governance, Companies Performance, Indonesian Capital Market
