The effect of Lerner Index and income diversification on the general bank stability in Indonesia

The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple...

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Main Authors: Syahyunan, Iskandar Muda, Hasan Sakti Siregar, Isfenti Sadalia, Gerry Chandra
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2017-11-01
Series:Banks and Bank Systems
Subjects:
Online Access:https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9544/BBS_2017_04_Syahyunan.pdf
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author Syahyunan
Iskandar Muda
Hasan Sakti Siregar
Isfenti Sadalia
Gerry Chandra
author_facet Syahyunan
Iskandar Muda
Hasan Sakti Siregar
Isfenti Sadalia
Gerry Chandra
author_sort Syahyunan
collection DOAJ
description The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple Linear Regression. It can be concluded simultaneously that market power and revenue diversification have significant effect on bank stability and, partially, market power has a positive and significant effect on a bank stability. Income diversification has a positive non-significant effect on bank stability.
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spelling doaj.art-7dce9612ef0748b798299cf3a2f94f4d2022-12-21T22:48:39ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742017-11-01124566410.21511/bbs.12(4).2017.059544The effect of Lerner Index and income diversification on the general bank stability in IndonesiaSyahyunan0Iskandar Muda1Hasan Sakti Siregar2Isfenti Sadalia3Gerry Chandra4Dr., Management Department, Faculty of Economics and Business, Universitas Sumatera Utara, MedanDr., Faculty of Economics and Business, Universitas Sumatera UtaraDr., Accounting Department, Faculty of Economics and Business, Universitas Sumatera Utara, MedanDr., Faculty of Economics and Business, Universitas Sumatera UtaraManagement Department, Faculty of Economics and Business, Universitas Sumatera Utara, MedanThe purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple Linear Regression. It can be concluded simultaneously that market power and revenue diversification have significant effect on bank stability and, partially, market power has a positive and significant effect on a bank stability. Income diversification has a positive non-significant effect on bank stability.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9544/BBS_2017_04_Syahyunan.pdfbank stabilityIndonesia Stock Exchangemarket powerrevenue diversification
spellingShingle Syahyunan
Iskandar Muda
Hasan Sakti Siregar
Isfenti Sadalia
Gerry Chandra
The effect of Lerner Index and income diversification on the general bank stability in Indonesia
Banks and Bank Systems
bank stability
Indonesia Stock Exchange
market power
revenue diversification
title The effect of Lerner Index and income diversification on the general bank stability in Indonesia
title_full The effect of Lerner Index and income diversification on the general bank stability in Indonesia
title_fullStr The effect of Lerner Index and income diversification on the general bank stability in Indonesia
title_full_unstemmed The effect of Lerner Index and income diversification on the general bank stability in Indonesia
title_short The effect of Lerner Index and income diversification on the general bank stability in Indonesia
title_sort effect of lerner index and income diversification on the general bank stability in indonesia
topic bank stability
Indonesia Stock Exchange
market power
revenue diversification
url https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9544/BBS_2017_04_Syahyunan.pdf
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