Independent Comisioners As A Good Corporate Governance Mechanisme To Increase Coporate Performance

Abstract

This study aims to determine the effect of independent commissioner in the composition of the board of commissioner on corporate performance that measured by return on assets. The research object are Islamic banks that listed on the Indonesia Stock Exchange (BEI). In examining the effect of the composition of the independent commissioner to the ROA, the author uses panel data regression test, the process using EViews7 program. We use panel data regression because the data is a cross section and also time series. Panel data regression test results indicate that there is a negative and significant impact on the composition of the board of commissioners to the ROA, indicated by coefficient β:-3.8692 and 0.0000 probabilities. The results of the test can be concluded that the more independent board in the board of commissioners in the company, it will decrease ROA. theseconditions reinforces the opinion that the implementation of the Good Corporate Governance in Indonesia is not maximized.