ARTICLE
TITLE

The EFFECT OF GOOD CORPORATE GOVERNANCE, COMPANY SIZE AND LIQUIDITY RISK TO PROFITABILITY (An Empirical Study on Conventional Foreign Exchange Commercial Banks Listed in Indonesian Stock Exchange during 2014 - 2018)

SUMMARY

One of a financial institution which is bank organized activities to collect funds from people and collect the funds to the people who needed. At the end of the business period, each company had to prepare financial reports through financial statement analysis, presented by ratio in order to increase the effectiveness of the company. This research is intended to know how Good Corporate Governance, Company Size, and Liquidity Risk impact the Profitability. Population in this study used list of conventional commercial banks on the Indonesia Stock Exchange for the period 2014 - 2018. Sampling technique in this study used a purposive sampling method and obtained 23 (twenty-three) banking companies with a study period of 5 (five) years. The data analysis technique which been used in this study is the least square panel. The results show us that Good Corporate Governance, Company Size, and Liquidity Risk has a simultaneous impact towards Profitability. Partially, good corporate governance had a negative impact on profitability, company size had a positive impact on profitability, and credit risk does not impact the profitability. Regulators cound use this research as a reference for controlling bank.Keywords: Profitability, Good Corporate Governance, Company Size, Liquidity Risk

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