The Impact of Corporate Governance Practices on Indonesia Banking Industry
17 Annual Conference on Pacific Basin Finance, Economic, Accounting, and Management (PBFEAM) The 3rd International Conference on Business in Asia, 2009
16 Pages Posted: 26 Apr 2012
Date Written: July 1-2, 2009
This study examines whether Corporate Governance practice provides information that is reflected in financial ratio. The primary objective of this study is to identify, and contribute to current knowledge on, corporate governance practices that supported financial performance especially for bank industries.
For this research, 116 banks were divided into two categories: bank, non IICG and banks with top ten IICG. Mann-Whitney Test was employed in this study. The results of this research show that there are differences of LDR, NPL, APB, FACR, IRR and OCOI. The other finding of this research show that top ten IICG bank have lower mean of LDR and NIM than bank without IICG and top ten IICG bank have higher mean of NPL, APB, FACR, IRR and OCOI then bank without IICG.
Keywords: corporate governance, profitability, quality of assets, solvability, sensitivity to market
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