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Abstract
Good financial performance can be achieved by the implementation of the Good Corporate Governance (GCG). The implementation of good GCG practices will provide a positive impact on a company's financial performance and the national economy.
The World Economic Forum Report 2011-2012 showed that the lack of availability of infrastructure is the second biggest problem after the inefficiency of government bureaucracy for businesses in doing business in Indonesia. Indonesia only ranks 76th out of 134 countries when measured in the quality of overall infrastructure rating. Indonesia's rating is under Singapore which ranks 2nd, Malaysia (26th), and Thailand (42nd).
Better implementation of GCG in the transport (should this be transportation?) sector will affect the economy of the nation. The positive impact of the GCG implementation in the transportation sector, can accelerate the increase in economic growth, prompting investors to invest in transportation companies in Indonesia.
This study examines the mechanisms of GCG, which focused on the board of directors, independent of directors, and the size of the company. The objective of this study is to determine whether the composition GCG in the company will affect the company's financial performance. Additionally, how will better implementation of GCG in companies in the transport sector affect the national economy?
The positive impact of the implementation of GCG in the transport sector in Indonesia that would provide convenience in transportation and logistics activities will also increase Indonesia's economic growth, prompting investors to invest in a transport (transportation?) sector company. The results of this study showed GCG affects a company's financial performance. Suggestions based on the results of this study included, for the company to increase the number of commissioners and the size of the company as well as more attention to the company's financial performance.
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