Provincial corruption and local development bank performance

This paper investigates the effect of provincial corruption on the performance of local development bank, specifically to the profitability and credit quality. We use the data of 26 local development banks in 2012 and 2013. For the provincial corruption measurement we use “Public Institution Openne...

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Bibliographic Details
Main Authors: Murharsito Murharsito, Fitri Ella Fauziah, Emanuel Kristijadi, Rr. Iramani
Format: Article
Language:English
Published: Universitas Islam Indonesia 2017-03-01
Series:Economic Journal of Emerging Markets
Subjects:
Online Access:https://journal.uii.ac.id/JEP/article/view/7104
Description
Summary:This paper investigates the effect of provincial corruption on the performance of local development bank, specifically to the profitability and credit quality. We use the data of 26 local development banks in 2012 and 2013. For the provincial corruption measurement we use “Public Institution Openness Index”. Results of this study are first, corruption significantly has a negative effect on the profitability of local development bank. Second, corruption doesn’t affect the credit quality of local development bank. These results are expected to enrich the within country corruption effect to the economic studies, particularly to the local development bank which is infrequently investigated.
ISSN:2086-3128
2502-180X