Scope of Research Sampling Method

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CHAPTER III RESEARCH METHODOLOGY

A. Scope of Research

This research is empirical study of hypothesis testing with using causalities research method to determine the effect between the independent variables variables that effect and the dependent variable the variable that is effected. The independent variable in this research is The Size of Board Director BOD, The Size of Board of Independent BOI, Managerial Ownership MO and Institutional Ownership IO. The dependent variable in this research is The Firm Performance as measured by Return on Assets ROA. This study aimed to examine the influence of Good Corporate Governance implementation towards the Firm Performance, the study on manufacturing companies listed in the Malaysian Stock Exchange period 2010-2014. This is because the researchers wanted to try to determine how the application of good corporate governance in other countries, especially developed country. This research is a quantitative research. It takes place in Malaysian Stock Exchange MDX with the manufacturing company as the research object. The type of data used in this research is secondary data. The Size of Board of Director BOD, The Size of Board of Independent BOI, Managerial Ownership MO and Institutional Ownership IO and The Firm Performance ROA are taken from the financial report of the manufacturing company listed in Malaysian Stock Exchange period 2010-2014. 43

B. Sampling Method

According Sugiyono 2009:61 states that the population is a region consisting of generalization objects or subjects that have certain qualities and characteristics are determined by the investigator to be studied and then drawn conclusions: The population in this study are all manufacture companies listed on the Indonesian stock exchanges. The number listed on the Malaysian Stock Exchange during the period 2010-2014 is as much as 300 issuers. The sample is part of the number and characteristics possessed by the population Sugiyono 2009:68. The sampling technique is using purposive sampling technique. Purposive sampling technique is non-random sample election where the information acquired, sorted with specific consideration and criteria Indriantoro Supomo, 2009. The criteria for consideration or determination of the sample in this study are as follows: 1 Manufacturing companies consistently publish an annual report in 2010-2014. 2 Companies disclose information on corporate governance in the annual report such as The Size of Board Director BOD, The Size of Board of Independent BOI, Managerial Ownership MO and Institutional Ownership IO 3 The financial report of the companies should experience the profit in their net income after tax, this is because in this research to calculate the firm performance by ROA Return on Assets. According to Darsono Ashari 2005 in Purwanto, 2011, by knowing the company ROA, it can assess 44 whether the company is efficient in utilize assets on operations company. Furthermore, it is explained that the ROA provides a better measure on profitability the company because it shows effectiveness assets under management in use efforts to generate revenue. ROA is obtained by comparing the net income by total assets.

C. Data Collection Method