EFFECT OF GOOD CORPORATE GOVERNANCE, BUSINESS STRATEGY AND SALES GROWTH ON COMPANY PERFORMANCE

This study aims to empirically examine the factors affecting company performance in the Consumer Non-Cyclicals sector listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. The research specifically analyzes the impact of Good Corporate Governance (GCG) proxied by the Board of Directors and Institutional Ownership, Business Strategy, and Sales Growth on Company Performance. The study employs panel data regression analysis using the Fixed Effect Model (FEM), which was determined as the most appropriate model based on Chow and Hausman tests. The findings indicate that the Board of Directors, Institutional Ownership, and Business Strategy do not significantly influence Company Performance, as their probability values exceed 0.05. However, Sales Growth has a significant positive effect on Company Performance, as evidenced by its probability value of 0.0000, which is smaller than 0.05. The F-test results show that all independent variables collectively influence Company Performance, with an Adjusted R-squared value of 77.47%, indicating that the model explains 77.47% of the variation in Company Performance, while the remaining 22.53% is influenced by other factors outside the study. These results suggest that, although Good Corporate Governance and Business Strategy play an essential role in corporate management, Sales Growth is the most dominant factor influencing company performance in the Consumer Non-Cyclicals sector. Therefore, companies in this sector should focus on enhancing their sales strategies to achieve optimal performance.