Does Corporate Governance Improve Bank Performance? A study of Rural Banks in West Java, Indonesia

Abstract

The objective of this research is to examine the correlation between Sound Corporate Governance and Financial Performance within Rural Banksing Institutions. The design/methodology uses balanced panel data multiple regression analysis on EViews 13 software. The study sample comprises Rural Banks located in West Java Province. The study's findings demonstrate that the inclusion of female directors significantly enhances ROA. The directors adversely impact both ROA and ROE. Furthermore, the board of commissioners and independent commissioners have no impact on ROA but negatively impact ROE. This study is unique in that it focuses on Rural Banks, which have received less attention in earlier research.