The influence of corporate governance on financial performance (return on asset) of the companies

Research in this thesis aims to analyze the influence of corporate governance on firm financial performance in this case more emphasis on return on assets. Corporate governance application score was the variable that used as the indicator of corporate governance. Return on asset was the variable that used as the indicator of financial performance of the company. The data taken from the Indonesian stock exchange (financial performance of return on asset) that has been registered also in the Indonesian Institute of Corporate Governance (CGPI score) at year 2008-2012. The sampling method in this research is selected listed companies in Indonesia Stock Exchange from 2008-2012 and also included in the Indonesian Institute for Corporate Governance of Corporate Governance Perception Index ranking of the year 2008-2012. Statistic method through simple regression analysis was used in hypothesis testing. The result of this research showed that corporate governance didn?t influence return on asset (ROA)