This research aims at revealing empirical proofs of Good Corporate Governance
GCG) implementation effect on firm performance. The samples are taken from firms listed
in The Indonesian Institute for Corporate Governance (IICG) from 2007 - 2011 and
Indonesian Stock Exchange 2006-2010. The numbers of the firms are 79. 7he independent
variable is GCG measured with CGPI ranking score, meanwhile the dependent variable
is the firms'performance proxied with ROE. The control variables are the composition of
asset {asset) and firm's size {size).
the hypothesis test employs multiple regression testing. The taken data are normally
distributed and they fu!ftll classic assumption. The result shows that GCG positively
influence firms' performance proxied with ROE. Despites, the two control variables, asset
and size, statistically give positive irifluence towards firms'performance.