THE EFFECT OF GOOD CORPORATE GOVERNANCE PRINCIPLES AND TRI HITA KARANA CULTURE ON FINANCIAL PERFORMANCE

ABSTRACT: The purpose of this study is to obtain empirical evidence of the influence of the principles ofGood Corporate Governance and Tri Hita Karana culture on the financial performance of the Village CreditInstitution (LPD) in Badung Regency. The population used in this study were all Village Credit Institutions inBadung Regency. Determination of the sample using purposive sampling technique, namely the samplingtechnique is not random or with certain criteria, based on the sample selection criteria used, the LPD that meetsthe criteria is as many as 20 LPD. The data analysis technique used in this research is multiple linear regressionanalysis techniques. Based on the research results, it proves that the principles of Good Corporate Governanceand the Tri Hita Karana culture have a positive effect on the financial performance of the 20 largest LPDs inBadung Regency. This shows that the increasing application of the principles of Good Corporate Governanceand the Tri Hita Karana culture, the more financial performance will be.

Keywords: principles of good corporate governance, Tri Hita Karana culture, financial performance