Author(s): Muhammad Saifi
The good corporate management is one way to overcome the problem of inconsistency of interests. Companies with corporate governance will have a more effective monitoring mechanism that makes more efficient company operations so that the company’s performance will be improved. The effectiveness of the implementation of corporate governance that is assumed to improve company’s performance cannot be separated from financial decision making by company management. The aim of this research is to test and analyze the effect of corporate governance, investment opportunity set on dividend policy and company’s performance of manufacturing companies listed in Indonesia Stock Exchange. The data analysis utilized is Generalized Structural Component Analysis (GSCA). The result of this research shows that the corporate governance does not have a significant effect on the dividend policy and company’s performance; the investment opportunity set reciprocally has a significant positive effect on the dividend policy; the investment opportunity set reciprocally has a significant positive effect on the company’s performance; and the dividend policy has significant effect on the company’s performance.