The Effect of Corporate Ethics Considerations, Corporate Governance Practices, and Corporate Governance Mechanism to Organizational Performance (A Study of Banking in Jakarta)

Select Volume / Issue:

• Volume 2,Issue 2, March 2014

Year:

2014

Type of Publication:

Article

Keywords:

Company Ethics Consideration, Corporate Governance Practice, Corporate Governance Mechanism, Organization Performance, Banking

Authors:

Asri Laksmi Riani

Journal:

IJISM

Volume:

2

Number:

2

Pages:

248-256

Month:

March

Abstract:

Bank as an institution which serves financial needs of the public must be able to serve with good corporate governance, to both the stakeholder and the shareholder, in order that it can produce high performance. The problems in this study are: 1). Is there any direct influence of corporate ethics consideration on the organization performance? 2). Is there any influence of corporate ethics consideration on the organization performance through, a). Corporate Governance practices and b). Corporate Governance mechanisms? The aims of the study are: 1). To identify and interpret the analysis result of corporate ethics consideration and its influence on the organization performance; 2). To identify and interpret the analysis result of corporate ethics consideration and its influence on the organization performance through Corporate Governance practices and mechanisms. This study is done on banking in DKI Jakarta by census and the data population is the managers in each observed bank. From 142 banks, 112 respondents provided the data which were ready to be analyzed. The main instrument used in the data collection is the questionnaires. The collected data were analyzed using SEM analysis, AMOS program, version 4.01. Prior to the analysis several test were applied: validity test, reliability test, and exploratory factor analysis. The result of the test met the required criteria. The results of this study are: 1). There is a significance influence of corporate ethics consideration on organization performance. 2). There is a significance of corporate ethics consideration on organization performance through: a). Corporate Governance practices and b). Corporate Governance mechanisms.

Full text: IJSIM_121_Final.pdf [Bibtex]