THE INLUENCE OF POLITICAL CONNECTION, HUMAN CAPITAL AND FIRM SIZE ON COMPANY PERFORMANCE Case Study of Subsidiaries of Non-Financial State-Owned Enterprises (BUMN) for the 2020-2022 Period.

Abstract

State-owned enterprises (BUMN) have a very important role in supporting a country's economy. State-owned enterprises (BUMN) as economic entities are no different from the private sector, it's just that most of them are owned by the state. However, currently, there are still many subsidiaries experiencing unstable performance. In this case, the main aim of this research is to determine the influence between three independent variables and one dependent variable for the 2020-2022 period. The research results can conclude that political connections do not affect company performance. This shows that companies that are politically connected to non-financial BUMN subsidiaries are not a problem for the company because the board of directors changes every year with different backgrounds, including political connection backgrounds. Human capital does not affect company performance, this is because external conditions are uncontrolled and their performance is limited, such as poor market conditions, so human capital in this situation has no effect on company performance. Firm size has a significant positive effect on company performance. Firm size has a positive effect on company performance, this shows that companies that have a large company size are more stable in generating higher profits than small companies.