PENGARUH PENERAPAN PRINSIP-PRINSIP GOOD CORPORATE GOVERNANCE TERHADAP KINERJA PEMERINTAH DAERAH (Studi Empiris Pada Pemerintah Kota Probolinggo)

Abstract

Good corporate governance has been a familiar term and has been widely used by both private and public sectors, particularly in governance. The implementation of good corporate governance on government is essential, especially in relation to agency theory and local autonomy. This research is intended to identify whether the implementation of good corporate governance principles which consist of transparency, accountability, responsibility, independency and fairness affects the government performance of City Government of Probolinggo. The samples involved in this research were chief of department, chief of agency, office head, and head of sub-unit. Meanwhile, the data used in this research were primary data gathered from survey method by distributing questionnaires to departments, agencies and offices of City Government of Probolinggo. The analysis method used was double linier regression. Regression analysis showed that variables of transparency, accountability, responsibility and fairness provided a positive effect on performance variable of City Government of Probolinggo. This is because GCG is a system of organization whose objective is to achieve organization performance as maximum as possible by ways that do not harm all parties that are related to the organization itself. Meanwhile, regression analysis of independency variable indicated that independency provided a significantly negative effect on the performance of City Government of Probolinggo, where it was because of the lack of coordination among the existing institutions in running their tasks and responsibilities.