Corporate Governance and Financial Performance of Village Credit Institution in Badung, Bali

Authors

  • I Gusti Ngurah Bagus Gunadi Universitas Mahasaraswati Denpasar, Indonesia
  • I Gede Cahyadi Putra Universitas Mahasaraswati Denpasar, Indonesia
  • Ida Ayu Ratih Manuari Universitas Mahasaraswati Denpasar, Indonesia
  • Kadek Apriada Universitas Mahasaraswati Denpasar, Indonesia

DOI:

https://doi.org/10.22225/jj.12.2.2025.239-250

Keywords:

Good Corporate Governance, Tri Hita Karana, Culture, Financial Performance

Abstract

Financial performance is a crucial indicator of the development and sustainability of Village credit institutions and plays a significant role in building stakeholder trust. This study investigates the impact of Good Corporate Governance and the Tri Hita Karana culture on financial performance in Badung Regency. The research includes all 115 Village credit institutions in Badung, with Village Credit Institution heads as respondents selected through purposive sampling. Data were collected using questionnaires and analyzed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach via SmartPLS. The findings reveal that Good Corporate Governance has a positive effect on financial performance, while the Tri Hita Karana culture strengthens this relationship. These results highlight the importance of implementing strong governance practices while integrating cultural values to enhance financial performance. Therefore, Village credit institutions management is encouraged to maintain good governance and uphold the principles of Tri Hita Karana in daily operations. This study contributes to understanding the role of corporate governance and cultural influences in financial performance. Future research should refine measurement instruments and consider additional variables, such as internal control and leadership style, to gain deeper insights into the determinants of financial performance.

References

Adnyani, K. W., Julianto, I. P., & Yasa, I. N. P. (2021). Pengaruh Sistem Pengendalian Internal, GCG, dan Keberadaan Awig-Awig Terhadap Kinerja Lembaga Perkreditan Desa Dengan Tri Hita Karana Sebagai Variabel Moderasi. JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi), 12(02), 413–424.

Anwar, M., Nidar, S. R., Komara, R., & Layyinaturrobaniyah, L. (2020). Rural bank efficiency and loans for micro and small businesses: evidence from West Java Indonesia. International Journal of Emerging Markets, 15(3), 587–610.

Apriantini, N. K. N. (2023). Pengaruh Sistem Pengendalian Intern, Budaya Organisasi, Gaya Kepemimpinan, Fungsi Badan Pengawas, Dan Motivasi Kerja Terhadap Kinerja Lembaga Pekreditan Desa (LPD) Di Kecamatan Mengwi. Universitas Mahasaraswati Denpasar.

Arfila, U. D., & Dewi, I. K. (2023). The influence of profitability and liquidity ratios on financial performance. Indonesian Journal of Islamic Economics and Finance, 5(1). https://doi.org/10.37680/ijief.v5i1.6983

Ariani, I. G. A. P., Endina, I. D. M., Arizona, I. P. E., & Kusuma, I. G. E. A. (2020). Pengaruh Prinsip-Prinsip Good Corporate Governance dan Filosofi Tri Hita Karana Terhadap Kinerja Lembaga Perkreditan Desa (LPD) Se- Kota Denpasar. Jurnal Kharisma, 2(3), 88–104.

Ariani, L. O., Mendra, N. P. Y., & Bhegawati, D. A. S. (2020). Kualitas Kredit Sebagai Pemoderasi Pengaruh Tingkat Penyaluran Kredit Dan Bopo Terhadap Profitabilitas Lembaga Perkreditan Desa (LPD) Se Kecamatan Kediri Tahun 2016-2018. Kumpulan Hasil Riset Mahasiswa Akuntansi (KHARISMA), 2(2).

Artini, N. R. (2023). The effect of Tri Hita Karana culture on financial performance in Village Credit Institutions (LPD) in Badung District. International Journal of Humanities, Social Sciences and Religious Studies, 3(1), 45–56. https://ojs.uhnsugriwa.ac.id/index.php/IJHSRS/article/view/2135

Brigham, E. F., & Ehrhardt, M. C. (2013). Financial Management: Theory & Practice. Cengage Learning.

Detikbali. (2022). LPD Ungasan Rugi Rp 26 Miliar, Eks Ketua Jadi Tersangka Korupsi. Detik.Com. https://www.detik.com/bali/berita/d-6226728/village credit institution-ungasan-rugi-rp-26-miliar-eks-ketua-jadi-tersangka-korupsi

Diatmika, I. B. W. (2023). Pengaruh Good Corporate Governance Dan Pengendalian Internal Pada Kinerja Lembaga Perkreditan Desa Di Kabupaten Badung. Prosiding Seminar Sosial Politik, Bisnis, Akuntansi Dan Teknik, 5, 39. https://doi.org/10.32897/sobat.2023.5.0.3080

Dwi Lestari, N. K. D., & Andayani, R. D. (2023). Pengaruh Penerapan Good Corporate Gorvanance, Sistem Pengendalian Internal dan Kompetensi Terhadap Kinerja Lembaga Perkreditan Desa (LPD) Se-Kota Denpasar. Hita Akuntansi Dan Keuangan, 4(4), 211–219. https://doi.org/10.32795/hak.v4i4.4462

Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting, 16th Edition. Mc Graw-Hill.

Jayantari, P. R., & Gorda, A. A. N. E. S. (2020). Pengaruh Penerapan Good Corporate Governance dan Keberadaan Awig-Awig terhadap Kinerja Keuangan Lembaga Perkreditan Desa dengan Budaya Tri Hita Karana sebagai Variabel Moderasi. Jurnal Penelitian Dan Pengembangan Sains Dan Humaniora, 4(1), 60. https://doi.org/10.23887/jppsh.v4i1.24465

Lestari, N. K. N., & Yudiaatmaja. (2022). Pengaruh Good Corporate Governance dan Tri Hita Karana terhadap Kinerja LPD di Masa Pandemi Covid-19 pada (LPD) di Kecamatan Mendoyo Jembrana. Vokasi: Jurnal Riset Akuntansi, 11(02), 170–179. https://doi.org/10.23887/vjra.v11i02.48630

Mulyadi. (2015). Sistem Akuntansi. Salemba Empat.

Pramesti, I. G. A. A., Endiana, I. D. M., & Dewi, N. K. A. S. (2023). Intellectual Capital, Partisipasi Anggaran, Pengawasan Internal, Komitmen Organisasi, dan Budaya Tri Hita Karana Terhadap Kinerja (LPD). Jurnal Bakti Saraswati, 12(01), 1–9.

Praptika, I. P. G. E., Yusuf, M., & Heslinga, J. H. (2024). How can communities better prepare for future disasters? Learning from the tourism community resilience model from Bali, Indonesia. Journal of Tourism Futures, 10(3), 504–523. https://doi.org/10.1108/JTF-04-2023-0092

Purnama, N. P. E. T., & Wirawati, N. G. P. (2024). Prinsip-prinsip Good Corporate Governance, budaya Tri Hita Karana, dan kinerja keuangan LPD. E-Jurnal Akuntansi, 34(6), 1540–1555. https://doi.org/10.24843/EJA.2024.v34.i06.p15

Putra, I. G. C., & Sunarwijaya, I. K. (2020). Corporate Governance dan Kinerja Lembaga Perkreditan Desa Di Kecamatan Blahbatuh, Gianyar. Jurnal Riset Akuntansi (JUARA), 10(1). https://doi.org/https://doi.org/10.36733/juara.v10i1.754

Rokhim, R., Lubis, A. W., Faradynawati, I. A. A., Perdana, W. A., & Deni Yonathan, A. (2023). Examining the role of microfinance: a creating shared value perspective. International Journal of Ethics and Systems, 39(2), 379–401. https://doi.org/10.1108/IJOES-09-2021-0168

Srivastava, S., Mendiratta, A., Pankaj, P., Misra, R., & Mendiratta, R. (2022). Happiness at work through spiritual leadership: a self-determination perspective. Employee Relations: The International Journal, 44(4), 972–992. https://doi.org/10.1108/ER-08-2021-0342

Sujana, I. K., Suardikha, I. M. S., & Vinensya, N. L. P. P. (2022). Budaya Tri Hita Karana Sebagai Pemoderasi Pengaruh Good Corporate Governance Pada Kinerja Lembaga Perkreditan Desa Kabupaten Badung. Buletin Studi Ekonomi, 19. https://doi.org/10.24843/BSE.2022.v27.i01.p03

Sugita, I. W., Setini, M., & Anshori, Y. (2021). Counter hegemony of cultural art innovation against art in digital media. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 147.

Setini, M., Yasa, N. N. K., Supartha, I. W. G., Giantari, I. G. A. K., & Rajiani, I. (2020). The passway of women entrepreneurship: Starting from social capital with open innovation, through to knowledge sharing and innovative performance. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 25.

Suparsa, I. (2024). Catur Purusa Artha Memoderasi Pengaruh Good Corporate Governance dan Komitmen Organisasi terhadap Kinerja Lembaga Perkreditan Desa.

Utari, N. N. N., & Suartana, I. W. (2024). Pengaruh penerapan prinsip GCG, komitmen organisasi, dan budaya Tri Hita Karana terhadap kinerja keuangan LPD seluruh Karangasem Regency. E-Jurnal Akuntansi, 34(8), 2113–2125. https://doi.org/10.24843/EJA.2024.v34.i08.p15

Wiagustini, L. P., Adnyani, I. D., Paramita, M. D., & Paramartha, P. A. (2024). Financial Sustainability Berbasis Budaya (Studi pada Lembaga Perkreditan Desa di Bali). E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 13(1), 1–20. https://ojs.unud.ac.id/index.php/EEB/article/view/112252

Downloads

Published

2025-09-29

How to Cite

Gunadi, I. G. N. B., Putra, I. G. C., Manuari, I. A. R., & Apriada, K. (2025). Corporate Governance and Financial Performance of Village Credit Institution in Badung, Bali. Jurnal Ekonomi Dan Bisnis Jagaditha, 12(2), 239–250. https://doi.org/10.22225/jj.12.2.2025.239-250

Issue

Vol. 12 No. 2 (2025): Jurnal Ekonomi dan Bisnis Jagaditha

Section

Articles

License

Copyright (c) 2025 I Gusti Ngurah Bagus Gunadi, I Gede Cahyadi Putra, Ida Ayu Ratih Manuari, Kadek Apriada

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.