The Effect of Implementing Good Corporate Governance Principles, Tri Hita Karana Culture and Organizational Commitments on LPD Financial Performance

ABSTRACT : Economic development at the village level is realized through the establishment of Lembaga Perkreditan Desa (LPD) to help empower the village boarding economy through targeted savings and provisionof effective capital. The purpose of this study is to explain the effect of applying the principles of goodcorporate governance, tri hita karana culture and organizational commitment on LPD financial performance.The population in this study were 35 LPDs in Denpasar City. Sampling was done by using non-probabilitysampling techniques and saturation sampling methods (saturated samples). Respondents in this study werePamucuk and Panureksa. The data in this study were obtained through questionnaires and LPD financial reportsin 2019. The data analysis technique used was multiple linear regression analysis. The results showed that theprinciples of good corporate governance, tri hita karana culture and organizational commitment had a positiveeffect on LPD financial performance. This means that the better the application of the principles of goodcorporate governance, tri hita karana culture and organizational commitment to the LPDs in Denpasar City, themore likely it is to improve the LPD’s financial performance.

Keywords: financial performance, good corporate governance principles, tri hita karana culture,organizational commitment