The role of good corporate governance and transformative big data analysis in improving company financial performance

Engkus, E.; Budiman, B.; Trisakti, F.

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International Journal of Data and Network Science

ISSN 2561-8156 (Online) - ISSN 2561-8148 (Print) Quarterly Publication Volume 8 Issue 2 pp. 1017-1024 , 2024

The role of good corporate governance and transformative big data analysis in improving company financial performance Pages 1017-1024 Download PDF

Authors: Engkus Engkus, Budiman Budiman, Fadjar Trisakti

DOI: 10.5267/j.ijdns.2023.12.006

Keywords: Good Corporate Governance, Big Data Analysis, Financial Performance, Companies

Abstract: The financial performance of a company reflects its ability to run and manage its operations while strictly adhering to prudent financial administration principles. Good financial performance often mirrors the implementation of Good Corporate Governance (GCG) principles in a company. The application of GCG provides a solid foundation for a company to conduct its operations transparently, ethically, and accountability. The objective of this research is to analyze the implementation of GCG and the capabilities of big data analysis on financial performance, as well as to examine the mediating role of big data analysis in the relationship between GCG and financial performance. The research method employed is quantitative, and data were obtained through a survey questionnaire distributed using a Likert Scale of 1-5. Random sampling was employed to select 258 samples from manufacturing companies that are State-Owned Enterprises (SOE/BUMN) listed on the Indonesia Stock Exchange (ISE/BEI). Data collection took place from March 2023 to May 2023. Respondents included staff and managers from these BUMN companies. The collected data were analyzed using Structural Equation Modeling (SEM) with SmartPLS software. The research findings indicate that GCG has a positive and significant influence on big data analysis, providing a foundation for digital transformation. Furthermore, GCG also contributes positively and significantly to the financial performance of the company. Big data analysis has proven to have a positive impact on financial performance, indicating the role of technology in optimizing financial results. Another interesting finding is that big data analysis mediates the relationship between GCG and financial performance, highlighting the crucial role of technology in connecting good corporate governance practices with optimal financial outcomes.

How to cite this paper

 Engkus, E., Budiman, B & Trisakti, F. (2024). The role of good corporate governance and transformative big data analysis in improving company financial performance.International Journal of Data and Network Science, 8(2), 1017-1024.

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