The Effect of Auditing Quality and Independent Board of Commissioners on Financial Performance of Property and Real Estate Companies In Indonesia

The decline in stock prices of property and real estate firms resulted from the government's policy of high loan interest has not affected the property sector and real estate. This study aims to examine the effect of good corporate governance implementation that is the quality of auditor (AQ) to financial performance and proportion of independent board of commissioner (ICs) to company financial performance. This research uses the purposive sampling method that is sampling technique which refers to certain criteria. Based on predetermined criteria, 23 companies will be selected as research samples in 2012 until 2016. The method of analysis used is the quantitative method, with classical assumption test and panel data regression analysis. From the three tests obtained the best model is Fixed Effect Model (FEM). The results of this study indicate that audit quality has the positive and insignificant effect on financial performance as reflected in return on equity. While the proportion of independent board of commissioners has a negative and significant impact on financial performance as reflected in return on equity.