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increase of number the audit committee in the company will influence to the increased of their performance also especially in banking industries. And the
rest of the variables that usually used by the researchers are board of commissioner‘s size, the type of industries, earning management and so on.
4. Multiple Regression Analysis
This research showed that the effect of good corporate governance indicator on company performance ROA. Here is the result of multiple
regression analysis:
Table 4.10 Regression Analysis
Model Unstandardized Coefficients
Standardized Coefficients
B Std. Error
Beta 1 Constant
.064 .027
BOD .007
.003 .138
BOI -.008
.005 -.113
MO -.062
.049 -.080
IO .019
.026 .048
Source: Secondary Data Output From SPSS 18 From table 4.10 above stated that the size of board of directors BOD and
Institutional Ownership IO, positively influence the Return on Assets ROA while the size of board of independent BOI and managerial ownership MO
negatively influences the return on assets ROA. Based on the table 4.10, it can be seen the influences between BOD, BOI, MO
and IO to ROA:
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ROA = - 0.064 + 0.007 BOD - 0.008 BOI - 0.062 MO + 0.019 IO + e
From the multiple linear regression equation above, it can be explained for each
variable as follows:
1 Constant at -0.064 units stated that if there is influences or unchanged in X1, X2, X3, and X4 BOD, BOI, MO and IO then the value of return on
the asset will be - 0.064. 2 Regression coefficient of variable X1 BOD marked positive +0.007 it
shows that the influences of the size of board of directors on the return on assets is positive or parallel, which means that if the value of the size of
board of directors variables change increased by one point, then the value of return on assets will increase by +0.007, with assumption variables X2,
X3 and X4 BOI, MO and IO remain or unchanged. 3 Regression coefficient of variable X2 BOI marked negative -0.008 it
shows that the influences of the size of board of independent on return on assets is negative or opposite direction, meaning that if the value of the
size of board of independent variable change increase by one point, then the value of return on assets will decrease by -0.008 assuming variables
X1, X3 and X4 BOD, MO and IO remain or unchanged. 4 Regression coefficient of variable X3 MO marked negative -0.062 it
shows that the influences of the managerial ownership on return on assets is negative or opposite direction, meaning that if the value of the
managerial ownership variable change increase by one point, then the
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value of return on assets will decrease by -0.062 assuming variables X1, X2 and X4 BOD, BOI and IO remain or unchanged.
5 Regression coefficient of variable X4 IO marked positive +0.019 it shows that the influences of the institutional ownership on the return on
assets is positive or parallel, which means that if the value of the institutional ownership variables change increased by one point, then the
value of return on assets will increase by +0.019, with assumption variables X1, X2 and X3 BOD, BOI and MO remain or unchanged.
5. Hypothesis Testing Result
