Bank Risk Profile, Good Corporate Governance And Company Values in Banking Companies Go Public in Indonesia
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2017, Vol 20, Issue 1
Abstract
The latest Bank Indonesia Regulation No.14/18/PBI/2012 requires bank to have minimum capital of 8%-14% depends on the risk profile of each bank. Therefore, the main objective of this research is to assess whether the total of inherent risk profile of each bank meets the terms of this regulation. In addition, this study aims to examine the impact of inherent risk profile and GCG on the banking company value. The sample in this study is determined by purposive sampling method and resulted in 24 banks or 72 observations during 2011-2013. The results showed that 23 banks had low risk and low to moderate risk, and only one bank had moderate risk. The results also showed that inherent risk profile rating is equivalent to capital adequacy. In other words, inherent risk profile of these banks have complied with Bank Indonesia Regulation No.14/18/PBI/2012. Furthermore, this study indicated that GCG has significant and positive influence on the company value, while the inherent risk has no influence on the company value. Overall, this study suggest that go public banks in Indonesia are one of good alternative means of investment for its soundness as reflected by the fulfillment of minimum capital ratio required by the regulator.
Authors and Affiliations
Susi Retna Cahyaningtyas, Elin Erlina Sasanti, Wahidatul Husnaini
Keywords
Related Articles
- EP ID EP469125
- DOI 10.14414/jebav.v20i1.759
- Views 76
- Downloads 0
An Approach of Vector Autoregression Model for Inflation Analysis in Indonesia
A control of the inflation rate caused by the fluctuations in foreign exchange reserves, money supply, and exchange rate is required to create the stability of the country's economy. This study aims to analyze the dynami...
The Determinants and Impact of Mandatory Disclosure In Indonesian Manufacturing Companies
The primary objective of this research is to determine the factors that have an association with mandatory disclosure and stock return. This research investigated 47 manufacturing companies listed on the Indonesia Stock...
The analysis of labor force participation in rubber smallholding sector in Banyuasin Regency, South Sumatera, Indonesia
The fact is that natural rubber has a strategic role as it is one of the commodities industry tropical crops. In addition, it also has important and strategic role in sup-porting the national economy, primarily as a sour...
Structure changes, the contribution of sectors, income per capita Indonesia in 1990 – 2014
Economic development is seen as a process of transition from one phase to another, from simple economic structure (agriculture) to the modern economy structure. Economic development is characterized by changes in the str...
Goal-setting participation as strategic measurement performance for enhancing managerial performance through procedural fairness and interpersonal trust
This research is a study of the behavior of the performance measurement strategy. Behavior is related to the participation of managers in setting performance goals that are measured in terms of financial and on-financial...