The purpose of this study is to examine the effect of the implementation of Good Corporate Governance as measured by the survey conducted by the IICG (The Indonesian Institute for Corporate Governance) which influences the return of stock through internal performance of the company. The sample in this research is the company go public in BEI which publish its financial report and included in the ranking of Corporate Governance Perception Index (CGPI) on period 2011 -2015. Data collection methods in this study using purposive sampling. With this method obtained the number of samples in this study as many as 28 companies CGPI participants who have complete data on the BEI. By using multiple linear regression analysis method, result of this research indicate that independent variable which represented by Corporate Governance and internal performance of company by using ROE (return on equity) together have significant effect on dependent variable that is stock return. Partially, CG has positive and significant effect to stock return, meanwhile ROE has no effect
on stock return and not significant as intervening variable between CG and stock return. |