The Relationship between Risk Management, Banking Regulation and Decision of Capital Structure: Rural Banks’ CEO Perception

Abstract

The purpose of this study is to examine and explain the perceptions of CEO of Rural Banks on: (1) risk management relationship with capital structure decision, (2) banking regulation relationship with capital structure decision, and (3) banking regulation and risk management relationship to capital structure decision. This research was conducted at the existing rural banks (BPR) in the provinces of North Sulawesi and Gorontalo (SULUTGO) in 2010-2013. The bank analyzed amounted to 20 banks determined based on population criteria. The analysis method used is Generalized Structural Component Analysis. The results of this study found that risk management has a significant relationship with capital structure decisions. The banking regulation has a close relationship of capital structure decisions. However, the relationship between banking regulation and risk management weakens capital structure decisions.

Authors and Affiliations

Ramon Arthur Ferry Tumiwa

Keywords

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  • EP ID EP405548
  • DOI -
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How To Cite

Ramon Arthur Ferry Tumiwa (2017). The Relationship between Risk Management, Banking Regulation and Decision of Capital Structure: Rural Banks’ CEO Perception. International Journal of Humanities and Social Science Invention, 6(7), 7-14. https://www.europub.co.uk/articles/-A-405548