This study is aimed to investigate the effect of Good Corporate Governance on company’s
performance. Samples in this study are manufacturing company listed in Indonesian Stock
Exchange. Good Corporate Governance would be associated by using the managerial ownership;
Institutional ownership; size of the board director; and the proportion of independent
commissioners. The study also includes Return on Equity (ROE) ratio as dependent variable.
The result proves managerial ownership, Institutional ownership, and the proportion of
independent commissioners have positively affect on companies’ performance. While the size of
board of director doesn’t has negatively affect on company’s performance. The results in this
study complement previous studies and provide some understanding on the importance of
practicing good corporate governance.