THE EFFECT OF INDEPENDENT BOARD OF COMMISSIONERS, FIRM SIZE AND LEVERAGE ON BANKING FINANCIAL PERFORMANCE IN INDONESIA

Abstract

This study aims to determine the effect of the Independent Board of Commissioners, Firm Size and Leverage on the Financial Performance of the Indonesian Bank. The research method used is quantitative, with secondary data from financial statements, financial ratio reports and management structure of conventional commercial banks registered with the Financial Services Authority (OJK) with a total sample of 55 banks. The data analysis techniques used are requirements analysis test, classical assumption test, multiple regression equation test and hypothesis testing. The study results partially show that the independent board of commissioners and firm size have a positive and significant effect on banking financial performance. In contrast, Leverage has a negative and significant effect on banking financial performance. The independent variable used in this study explains its effect on financial performance by 38,5%, while other factors explain the rest