The Influence of Organization’s Culture and Internal Control to Corporate Governance and is Impact on Bumn (State-Owned Enterprises) Corporate Performance in Indonesia

  • Maya SARI Accounting Programme of Faculty of Economic and Business Universitas Muhammadiyah Sumatera Utara, Indonesia
  • A de Fatma LUBIS Accounting Programme of Faculty of Economic and Business Universitas Sumatera Utara, Sumatera, Indonesia
  • Azhar MAKSUM Accounting Programme of Faculty of Economic and Business Universitas Sumatera Utara, Sumatera, Indonesia
  • Prihatin LUMBANRAJA Accounting Programme of Faculty of Economic and Business Universitas Sumatera Utara, Sumatera, Indonesia

Abstract

This study measured four variables, namely, organizational culture, and internal control as exogenous variables as well as corporate governance and corporate performance as an endogenous variable. To collect data using survey techniques on state-owned companies in Indonesia. Respondents of this research are the manager of state-owned enterprises in Indonesia as many as 270 respondents. Validity and reliabilities made to the questionnaire that has been collected. The data were analyzed using Structural Equation Modeling with LISREL application. The results showed that there is significant influence of organizational culture on corporate governance, internal control of corporate governance, organizational culture on corporate performance, and corporate governance influence on corporate performance. From the test direct effect has no significant effect of internal control to corporate performance. Corporate governance is an intervening variable relation between the internal control and corporate performance.

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Published
2018-12-12
How to Cite
SARI, Maya et al. The Influence of Organization’s Culture and Internal Control to Corporate Governance and is Impact on Bumn (State-Owned Enterprises) Corporate Performance in Indonesia. Journal of Advanced Research in Law and Economics, [S.l.], v. 9, n. 2, p. 681-691, dec. 2018. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/2496>. Date accessed: 04 dec. 2022. doi: https://doi.org/10.14505//jarle.v9 2(32).30.