Good Corporate Governance dan Cadangan Penghapusan Kredit

Abstract

This study is aimed to test whether the decline of Net Performing Loans in Indonesia which is judged by bad debt provision is affected by the internal mechanisms of corporate governance, the shareholding structure, board of commissioners and board of directors. Shareholding structure measured by the percentage of state ownership, domestic and foreign public. Commissioners measured the percentage of independent directors of the board of commissioners and the activity is stated in the number of meetings. While the board of directors measured by the number of directors and the board of directors of activity is stateed in number of meetings.The population in this study are all banks in Indonesia. Sampling with purposive sampling technique, generating 135 sample. The results of this study indicates that stock ownership by the state, the public shareholding by domestic, foreign holdings, the percentage of independent directors in the board of commissioners and number of boards of directors has positive impact on bad debt provision. The number of commissioners meetings and board meetings has no significant impact on bad debt provision.

Keywords: Net performing loans, bad debt provision, corporate governance, board of commissioners, board of directors