ANALYSIS ON THE INFLUENCE OF GOOD CORPORATE GOVERNANCE TOWARD FINANCIAL PERFORMANCE IN BANKING SECTOR COMPANIES LISTED IN BEI 2014-2016

The background of this research is the implementation of corporate governance is also become the important problem in banking environment. Since the economic crisis was happened in Indonesia at 1997 has destroyed some of economic pillars, one of them causing the worst bank crisis in history of national banking in Indonesia and decreasing the national banking performance. The purposes of this thesis are to analyze the impact of board of independent commissioners as indicator from Good Corporate governance mechanism towards financial, to analyze the impact of board of commissioners as indicator from Good Corporate governance mechanism towards financial performance, to analyze the impact of board of directors as indicator from Good Corporate governance mechanism towards financial performance. The data that will be used is secondary data that had been taken from Stock Exchange Corner and Indonesia Capital Market Directory (ICMD). The hypothesis that had been developed by the author are H1: The size of the Board of Commissioners has a positive and insignificant effect on financial performance (CFROA), H2: The size of the Board of Independent Commissioners has a positive and significant impact on financial performance (CFROA) and H3: size of board of director has positive and significant impact on financial performance (CFROA). The result of this research shows that the first hypothesis is accepted but the second and third hypothesis are rejected.Keywords: Board of Independent Commissioners, Board of Commissioners, Board of Directors, CFROA, Banking Sector