14 been done by management to realize the wishes of the owner. The
signal can be information states that the company is better than the other companies and other information Subraminiam, et al., 2009.
Signaling theory stated that a good quality manufacturing company would deliberately give a signal to the market, so the market is
expected to distinguish a quality company bad. In order for the signal to be effective, it must be captured the market and perceived as good,
and not easily imitated by companies that are of poor quality Lianto, 2010.
Signaling theory is rooted in the pragmatic accounting theory which focuses on the influence of information on changes in user
behavior information. One of the information that can be used as the signal is the announcement made by an issuer. This announcement will
be able to affect the price fluctuations of securities company issuers that do announcements. Companies that have a belief that the company
has good prospects in the future will tend to communicate the news to the investors Lianto, 2010.
3. Corporate Governance
Corporate Governance was first introduced by the Cadbury Committee in 1992 in a report that became known as the Cadbury
Report. This report will then be a decisive turning point in the world of corporate governance practices,
15 Definition of corporate governance issued by the Forum for
Corporate Governance in Indonesia FGCI 2001, namely:
“a set of rules that define the relationship between shareholders, management, creditors, government, employees and stakeholders internal
and external parties related words, the rights and obligations or in other words the system that directs and controls the company. The purpose of
corporate governance is to create value for the stakeholders
”.
According to the Organization for Economic Cooperation and Development OECD in the Study of Application of the OECD
Principles of 2004 in Bapepam Regulation on Corporate Governance 2006, corporate governance is:
“Corporate governance is the system by which business corporation are directed and controlled. The corporate governance structure specifies the
distribution of right and responsibilities among different participant in the corporation such as boards, manager, shareholders, and other
stakeholders and spells out the rules and procedures for making decisions corporate affair. By doing this, it also provides the structure through
which the company objectives are set, and the means of attaining those
objectives and monitoring performance.”
Objectives achieved from corporate governance is the creation of Good Corporate Governance GCG is good corporate governance.
The principle contained in GCG that should be applied and held in each company in order to achieve sustainability sustainability
companies by taking into account the stakeholders stakeholders according to the National Committee on Governance NCG 2006: 5,
namely:
16 1. Transparency
To maintain objectivity in doing business, companies must provide material and relevant information in a way that is easily accessible
and understood by stakeholders. Companies must take the initiative to express not only the problem that required by legislation, but
also important for decision-making by shareholders, creditors, and other stakeholders.
2. Accountability Companies must be accountable for performance in a transparent
and fair. Therefore, the company must be properly managed, scalable, and according to the company while taking into account
the interests of shareholders and other stakeholders. Accountability is a necessary precondition for achieving continuous performance.
3. Responsibility Companies must comply with legislation and to implement
responsibilities towards society and the environment so that it can maintain the continuity of the business in the long term and to be
recognized as a good coporate citizen. 4. Independency
To accelerate the implementation of the GCG principles, the company must be managed independently so that each organ of the
company does not dominate the other and can not be interfered with by other parties.
