DETERMINANTS OF PERFORMANCE IN INDONESIAN BANKING: A CROSS-SECTIONAL AND DYNAMIC PANEL DATA ANALYSIS

Buyung SARİTA; Gholamreza ZANDİ; Alireza SHAHABİ

Makale detayları

DETERMINANTS OF PERFORMANCE IN INDONESIAN BANKING: A CROSS-SECTIONAL AND DYNAMIC PANEL DATA ANALYSIS

Yazarlar:

Buyung SARİTA | Gholamreza ZANDİ | Alireza SHAHABİ

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Economics and Finance Studies 2012 Vol.4 Issue 1, pp.41-55

Belge Tipi:

Makale

Yayın Tarihi:

5/2012

Belge Dili:

Türkçe

Document ID (Org No.):

2000811109

Sıklık:

İki Yıllık

eISSN:

1309-8055

Özet:

 

This paper examines determinants of bank performance in Indonesia for the  period of 1994-1999. It was pooled cross-sectional time series and dynamic panel  data models. This research incorporates the traditional Structure-Conduct- Performance (SCP) and Relative Efficiency (RE) hypotheses. The estimation  results show that bank performance industry is competitive, and implies that  market structure in Indonesian banking sector is nearly perfect competition.  However, no evidence has been found in this study in support of the traditional  SCP, while RE is otherwise. The negative relationship between loans to business  groups and bank performance, which is likely due to the high loans provided to  them, thus supporting the moral hazard hypothesis. The negative relationship  between market share loan and return on assets, the negative relationship between  debt-to-total assets and bank performance is likely because of the high level of  debt. The negative relationship between debt-to-total assets and bank performance  in a scenario of high interest rates indicates that banks acted responsibly by paying  high interest charges prevailing at that time. This also results in the negative  relationship between capital adequacy ratio and bank performance.

Makale detayları

DETERMINANTS OF PERFORMANCE IN INDONESIAN BANKING: A CROSS-SECTIONAL AND DYNAMIC PANEL DATA ANALYSIS

Yazarlar: Buyung SARİTA | Gholamreza ZANDİ | Alireza SHAHABİ

Yayıncı: Sosyal Bilimler Araştırmaları Derneği

Dergi: International Journal of Economics and Finance Studies 2012 Vol.4 Issue 1, pp.41-55

Belge Tipi: Makale

Yayın Tarihi: 5/2012

Belge Dili: Türkçe

Document ID (Org No.): 2000811109

Sıklık: İki Yıllık

eISSN: 1309-8055

Sayı

Yazarlar:

Buyung SARİTA | Gholamreza ZANDİ | Alireza SHAHABİ

Yayıncı:

Sosyal Bilimler Araştırmaları Derneği

Dergi:

International Journal of Economics and Finance Studies 2012 Vol.4 Issue 1, pp.41-55

Belge Tipi:

Makale

Yayın Tarihi:

5/2012

Belge Dili:

Türkçe

Document ID (Org No.):

2000811109

Sıklık:

İki Yıllık

eISSN:

1309-8055