The Impact of Ownership Concentration, Commissioners on Bank Risk and Profitability: Evidence from Indonesia

被引:16
作者
Hanafi M.M. [1 ]
Santi F. [2 ]
Muazaroh [3 ]
机构
[1] Department of Management, Faculty of Economics and Business (FEB), Universitas Gadjah Mada (UGM), Yogyakarta
[2] Department of Management, Faculty of Economics, University of Bengkulu, Bengkulu
[3] Department of Management, Faculty of Economics, STIE Perbanas Surabaya
关键词
Bank Risk; Commissioners; Corporate Governance; Indonesia; Ownership Concentration;
D O I
10.14208/eer.2013.03.02.005
中图分类号
学科分类号
摘要
We investigate corporate governance and risk in Indonesian banking. More specifically, we investigate whether ownership concentration and commissioners affect bank risk and profitability. Using a sample of 117 Indonesian banks (for ownership concentration analysis), and 28 public banks (for commissioner analysis), we find that ownership concentration and governance by larger numbers of commissioners improves a bank’s profitability and it’s handling of risk. The impact of commissioners on bank risk and profitability takes non-linear forms. We also show that various types of commissioners have different impacts on bank risk and profitability. Our study highlights the importance of corporate governance in the banking industry. © 2013, Eurasia Business and Economics Society.
引用
收藏
页码:183 / 202
页数:19
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