CORPORATE GOVERNANCE MECHANISM ON FIRM PERFORMANCE THROUGH WORKING CAPITAL MANAGEMENT EFFICIENCY (WCME)

The main objective of this study was to analyze and explain the implementation of corporate governance mechanism which includes board characteristics and audit committee characteristics as independent variables, the Working Capital Management Efficiency as mediating variable on the firm performance. This research was conducted at corporates in food and beverage, construction, botsudan, animal feed and gas industries located in Makassar. This study used survey method in the collection of primary data. Purposive sampling was utilized in this study with a total sample of 90 respondents. Data were analyzed using regression analysis with Partial Least Square (PLS) - SEM technique. The results showed that board characteristics had directly significant effect on firm performance while Audit committee characteristics had insignificant effect on firm performance. Indirectly, board characteristics have insignificant effect on firm performance through efficiency working capital management while audit committee characteristics have significant effect on firm performance through working capital management efficiency.