Abstract

 

This stduy aims to analyze corporate governance mechanism, green business, and corporate performance for company go public at Indonesian Capital Market. Corporate governance mechanism in this study used ownership structure and number of board commisaries. Green business is indicated with company that follow the Rating Program for Environmental Management in Companies (PROPER). So, this study want to examine empirical evidence the influence of corporate governance mechanism to green business, financial performance, and market performance. Data used in this study are companies go public at Indonesian Capital market and which is follow the Rating Program for Environmental Management in Companies (PROPER) in 2009-2010 with the total of 30 companies. Technic statistic of this research used a Partial Least Square. Results in this research show that (1). Ownership structure can't suppport to green business, but number of board commisaries support to green business. (2). Green business had positive impact to financial performance and market performance, but not significant. (3) Ownership structure had negative impact to financial performance and not significant. (4) Number of board commisaries had negative impact and significant to financial performance. (5). Financial performance had positive impact and significant to market performance. This is indicated that ownership structure can't effective as a corporate governance mechanism, but number of board commisaries can effective as a corporate governance mechanism, so support to green business, financial and market performance

 

Keywords : corporate governance mechanism, green business, financial performance, market performance