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Performance is a picture of the level of achievement of the results of the implementation of an operational activity. Assessment of performance here is
a method and process assessment task execution performance of a person or a group of people or work units within a company or organization in accordance
with the performance standards or goals set. In realizing the vision and mission of the organization, companies need to have a measure to gauge how
the achievement of goals and objectives within a specific time period. Abdifatah et al, 2014
B. Previous Research
After collecting
several reference
and journal
regarding the
implementation of Good Corporate Governance in the company, the researcher found that there are several studies which are associated with this
study. Therefore, to see the differences between the study and it also can be as the added information regarding the same issues, here there some conclusion
from the previous studies which is founded as the relevant study:
1. The impact of Corporate Governance on Firm Performance: Banking
Industries in Malaysia.
This study was examined the relationship of corporate governance and firm performance of banking industries in Malaysia. Besides that, it were
highlight about the variables that used such as board size BOS, Role and Responsibilities board of director BOD, Audit Committee AC and Boar
independence BID to relates with the return on assets ROA. This study was
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using the three methods of statistical analysis to analyze the impact of corporate governance which are the descriptive analysis, correlation analysis
ad multivariate analysis which to view the significant that exits between ROA and BOS, BOD, AC and BID. Besides that, they investigate the effectiveness
of banking industry in Malaysia through the annual report of each bank in Malaysia that recorded from 2008 to 2011. And the result shows that, there is
a positive relationship between BOS, BOD, AC, and ROA. Therefore there is a negative relationship between BID and ROA. Ismail et al, 2014
2. The Relationship between Corporate Governance Attributes and Firm
Performance before and after the revised code some Malaysian evidences.
This study was examined the impact of corporate governance attributes and ownership structure patterns on corporate performance of Malaysian listed
companies following the revised code on corporate governance in 2007. To provide an insightful assessment on the revised code‘s implications on firm
performance, data before 2006 and after 2009 the revised code in 2007 were analyzed. The study involves analyses of 170 observations in a two-year
period, 2006 and 2009. The sample of the study was selected on the basis of a stratified random sampling procedure to allow a representative sample of the
various sectors listed on Bursa Malaysia. Based on data extracted from the annual reports of 2006 and 2009, corporate performance was captured using
accounting performance indicators return on assets and return on equity. In addition to descriptive analyses, multiple regression analysis was used to
assess the influence of the governance and ownership structure attributes on
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firm performance. The findings revealed a decreasing trend of the financial performance of the sample companies over the two-year period which this
study attributes to the recent global financial meltdown. In terms of corporate governance compliance, the results showed that there were cases of non-
compliance of the basic requirements of the corporate governance code in Malaysia even after the revised code in 2007. In addition, the multiple
regression results showed that only board meetings had significant negative association with firm performance following the revised code. None of the
other variables had significant impact on firm performance before and after the revised code. Firm size and leverage, as control variables, however,
showed significant association with firm performance. Abdifatah et al, 2014
3. The Implementation of Good Corporate Governance and Its Impact on
