The Significance Of Effective Corporate Governance And Transformational Big Data Analysis In Enhancing Firm Financial Performance
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Abstract
The financial performance of a firm is an indication of its competence in effectively operating and managing its activities while carefully following sound financial management standards. The financial success of a corporation is frequently a reflection of the effective application of Good Corporate Governance (GCG) principles. The implementation of Good Corporate Governance (GCG) establishes a strong basis for a firm to carry out its activities in a transparent, ethical, and accountable manner. The aim of this study is to assess the application of corporate governance practices (GCG) and the effectiveness of big data analysis in influencing financial performance. Additionally, it seeks to investigate the intermediary function of big data analysis in the connection between GCG and financial performance. The study used a quantitative methodology, whereby data was collected via a survey questionnaire administered using a Likert Scale ranging from 1 to 5. A random sampling method was used to choose 188 samples from State-Owned Enterprises listed on the Amman Stock Exchange. The data gathering period spanned from August 2023 to September 2023. The participants in the study consisted of employees and supervisors from these firms. The data gathered underwent analysis by Structural Equation Modeling (SEM) utilizing the SmartPLS program. The study results suggest that GCG has a favorable and substantial impact on big data analysis, serving as a basis for digital transformation. In addition, GCG plays a beneficial and substantial role in enhancing the company's financial performance. The use of big data analysis has shown a favorable influence on financial performance, underscoring the significance of technology in enhancing financial outcomes. Furthermore, it has been shown that the analysis of large amounts of data serves as an intermediary in the connection between GCG (good corporate governance) and financial performance. This emphasizes the vital role of technology in linking effective corporate governance practices with the most favorable financial results.
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