Review Journal "Good Governance on Profitability"
Review Jurnal EFFECTS OF THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE ON PROFITABILITY Research Background The financial crisis that hit Asia, especially Indonesia in from 1997 to 1998 had a tremendous impact on the companies that dominate the business world in Indonesia. Many companies were liquidated because they could not survive. This can be observed from the fluctuations of exchange rate against foreign currencies, especially against the US dollar caused by the lack of management foundation in those companies. There were many companies that were liquidated and this caused the government to initiate restructuring action and recapitulation. Recapitulation and restructuring actions indicates the lack of those companies ability to survive. The poor performance and low competitive sense of Government or State-Owned Enterprises (BUMN) were also identified as the cause of the financial crisis that hit Indonesia. By the end of 2006, Indonesia’s economy ...