• Aminullah Aminullah Universitas Islam Madura
  • Mohammad Herli Universitas Wiraraja
  • Hafidhah Hafidhah Universitas Wiraraja
  • Liyanto Liyanto Universitas Wiraraja
Keywords: CGPI, Firm Performance, Market Reaction


This article discusses how the Corporate Governance Perception Index (CGPI) may impact how well a business does financially and how the market reacts to news regarding the CGPI. The author arrives to the following conclusion after doing synthesis analysis: it demonstrates that CGPI announcements do, in fact, have an effect on firm performance, growth, and value. The revelation of a company's CGPI rating was another factor that investors considered while making their decisions. Because the CGPI index of the firm reflects the company's capability of being managed by management, the higher the rating achieved indicates the larger the company's capability of being governed


A, A., Fauzi, R.R., 2014. Pengaruh Indeks Good Corporate Governance terhadap Kinerja Keuangan Perusahaan di Iicg dari Tahun 2007-2010. J. Online Mhs. Fak. Ekon. Univ. Riau 1.

Agyemang, O.S., Castellini, M., 2015. Corporate governance in an emergent economy: a case of Ghana. Corp. Gov. 15, 52–84.

Alli, K.L., Khan, A.Q., Ramirez, G.G., 1993. Determinants of corporate dividend policy: A factorial analysis. Financ. Rev. 28, 523–547.

Alvin, K., 2014. Pengaruh Penerapan Prinsip – Prinsip Good Corporate Governance Terhadap Organizational Citizenship Behavior. Agora 2.

Aminah, A., Nurdiawansyah, N., 2016. The Effect of the Implementation of Good Corporate Governance on the Company Financial Performance. Presented at the 3rd International Conference on Law, Business and Governance, Bandar Lampung University.

Arora, A., Bodhanwala, S., 2018. Relationship between Corporate Governance Index and Firm Performance: Indian Evidence. Glob. Bus. Rev. 0972150917713812.

Arora, A., Sharma, C., 2016. Corporate governance and firm performance in developing countries: evidence from India. Corp. Gov. 16, 420–436.

Bathala, C.T., Rao, R.P., 1995. The determinants of board composition: An agency theory perspective. Manag. Decis. Econ. 16, 59–69.

Black, B., de, C., Khanna, V., Kim, W., Yurtoglu, B., 2017. Corporate governance indices and construct validity. Corp. Gov. Int. Rev. 25, 397–410.

Brada, J.C., 2016. Corporate governance following mass privatization. J. Comp. Econ. 44, 1132–1144.

Core, J.E., Holthausen, R.W., Larcker, D.F., 1999. Corporate governance, chief executive officer compensation, and firm performance1. J. Financ. Econ. 51, 371–406.

Diallo, B., 2017. Corporate governance, bank concentration and economic growth. Emerg. Mark. Rev. 32, 28–37.

Ernas, Y., Sari, A., 2011. Perbedaan Reaksi Pasar terhadap Publikasi Corporate Governance Perception Index pada Perusahaan Top 10 dan Non Top 10 (Berdasarkan Survey IICG). J. Ekon. Univ. Riau 19.

Faleye, O., Krishnan, K., 2017. Risky lending: Does bank corporate governance matter? J. Bank. Finance 83, 57–69.

Guiso, L., Sapienza, P., Zingales, L., 2015. The value of corporate culture. J. Financ. Econ. 117, 60–76.

Harford, J., Mansi, S.A., Maxwell, W.F., 2012. Corporate governance and firm cash holdings in the US, in: Corporate Governance. Springer, pp. 107–138.

Indarti, M.K., Extaliyus, L., 2013. Pengaruh Corporate Gorvernance Preception Index (Cgpi), Struktur Kepemilikan, Dan Ukuran Perusahaan Terhadap Kinerja Keuangan. J. Bisnis Dan Ekon. 20.

Jackling, B., Johl, S., 2009. Board structure and firm performance: Evidence from India’s top companies. Corp. Gov. Int. Rev. 17, 492–509.

Jiang, F., Kim, K.A., 2015. Corporate governance in China: A modern perspective. J. Corp. Finance 32, 190–216.

Kieschnick, R., Moussawi, R., 2018. Firm age, corporate governance, and capital structure choices. J. Corp. Finance 48, 597–614.

La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Vishny, R., 2000. Investor protection and corporate governance. J. Financ. Econ. 58, 3–27.

Mahmood, Z., Saba, I., Aamir, M., Shah, A.A., 2017. Impact of the Corporate Governance and the Ownership Structure on the Firmâ€TM s Financial Performance and its Risk Taking Behavior. J. Account. Finance Emerg. Econ. 3, 1–10.

Mai, M.U., 2015. Corporate Governance Dan Interdependensi Antara Leverage, Profitabilitas Serta Kebijakan Dividen Dalam Mencapai Nilai Perusahaan. J. Keuang. Dan Perbank. 19.

Makaryanawati, M., 2012. Reaksi Investor Atas Corporate Governance Perception Index (Cgpi) 2011. J. Keuang. Dan Perbank. 16.

Mirza, H.H., Azfa, T., 2010. Ownership structure and cash flows as determinants of corporate dividend policy in Pakistan.

Mishra, S., Mohanty, P., 2014. Corporate governance as a value driver for firm performance: evidence from India. Corp. Gov. 14, 265–280.

Nalukenge, I., Tauringana, V., Mpeera Ntayi, J., 2017. Corporate governance and internal controls over financial reporting in Ugandan MFIs. J. Account. Emerg. Econ. 7, 294–317.

Noresson, J., Neziri, K., 2016. Betydelsefulla framg\a angsfaktorer vid implementering av finansiella regelverk: En studie inför implementeringen av MiFID II för finansiell r\a adgivning och investeringstjänster.

Porter, M.E., 1998. Competing across locations: Enhancing competitive advantage through a global strategy. Harvard Business School Press.

Roseline, J., 2015. Evaluasi Penerapan Internal Control Berdasarkan COSO untuk Mencegah Tindakan Fraud Pada Siklus Delivery Service di PT B Surabaya.

Siddiqui, S.S., 2015. The association between corporate governance and firm performance–a meta-analysis. Int. J. Account. Inf. Manag. 23, 218–237.

Singh, D., Delios, A., 2017. Corporate governance, board networks and growth in domestic and international markets: Evidence from India. J. World Bus. 52, 615–627.

Zagorchev, A., Gao, L., 2015. Corporate governance and performance of financial institutions. J. Econ. Bus. 82, 17–41.
Abstract viewed = 7 times
PDF downloaded = 6 times