Corporate Governance is the process and structure used to direct and
manage the business affairs of the company towards enhancing business prosperity
and corporate accountability with the ultimate objective of realizing long-term
shareholder value, whilst taking into account the interest ofother stakeholders.
This research aims to examine the effect ofgood corporate governance and
ownership structure on corporate performance ofCorporate Governance Perception
Index participator. This research uses CGPI index, managerial ownership and
institutional ownership as independent variables and ROE and Tobin's Q as
dependent variables . The object ofthis research is CGPI Rating Reports year 2006
and 2007 and annual report year 2006 and 2007.
This research employs a multiple regression to test the hypothesis. The results
of this study are: (1) there is no significant relationship between corporate
governance index and corporateperformance. (2) there is no significant relationship
between managerial ownership and corporate performance. (3) there is significant
positive relationship between institutional ownership and return on equity (ROE), but
no significant relationship between institutional ownership and Tobin's Q
Keywords: Good Corporate Governance, Ownership Structure, Corporate
Performanc