IMPACT OF GOOD CORPORATE GOVERNANCE MECHANISM ON BUSINESS PERFORMANCE IN THE CONSUMER SECTOR AT IDX

Abstract

Good Corporate Governance (GCG) is a crucial principle in corporate governance, aimed at increasing company value and increasing public trust in management performance. The implementation of GCG principles, particularly in terms of transparency and information disclosure, is crucial for consumer sector companies listed on the Indonesia Stock Exchange (IDX). This study aims to examine the influence of Good Corporate Governance mechanisms on company value using a normative-juridical method. This approach is conducted through a study of various laws and regulations, GCG guidelines, expert doctrine, and relevant previous research findings. This study emphasizes the principles of transparency and information disclosure as a manifestation of GCG implementation in public companies. The results indicate that consistent GCG implementation, particularly through information disclosure, has a positive impact on increasing company value. This confirms that compliance with GCG norms and principles not only impacts good governance but also strengthens the reputation and competitiveness of consumer sector companies listed on the IDX.