The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia
This research aimed to examine the effect of corporate governance on financial performance on bank listed on the Indonesia Stock Exchange (IDX) period 2011-2015, either directly or indirectly through credit risk and operational risk. This research used quantitative approach and the saturated sample...
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Merdeka Malang
2017-11-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/1285 |
| _version_ | 1819267627148640256 |
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| author | Mohamad Bastomi Ubud Salim Siti Aisjah |
| author_facet | Mohamad Bastomi Ubud Salim Siti Aisjah |
| author_sort | Mohamad Bastomi |
| collection | DOAJ |
| description | This research aimed to examine the effect of corporate governance on financial performance on bank listed on the Indonesia Stock Exchange (IDX) period 2011-2015, either directly or indirectly through credit risk and operational risk. This research used quantitative approach and the saturated sample method. There were 27 banks that categorized as sample. Furthermore, Partial Least Square (PLS) used for hypotheses and analysis test and free statistic calculation for Sobel Test version 4 for testing credit risk variables and operational risk as mediation. The results of this research showed that improving the implementation of corporate governance can reduced credit risk and operational risk and increased financial performance, whereas, low of credit risk and operational risk can increased financial performance. The results of mediation testing showed that credit risk and operational risk positively mediated the effect of corporate governance on financial performance. This explained that the implementation of good corporate governance can minimized the conflicts of interest and asymmetry information that leads to the cost of non-performing loans and additional capital costs that increased the company profitability. |
| first_indexed | 2024-12-23T21:20:10Z |
| format | Article |
| id | doaj.art-db8e0c82d4814cc8910f4d2cc1534023 |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-12-23T21:20:10Z |
| publishDate | 2017-11-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-db8e0c82d4814cc8910f4d2cc15340232022-12-21T17:30:48ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872017-11-01214670680The Role of Corporate Governance and Risk Management on Banking Financial Performance in IndonesiaMohamad Bastomi0Ubud Salim1Siti Aisjah2Department of Management Faculty of Economics and Business University of Brawijaya IndonesiaDepartment of Management Faculty of Economics and Business University of Brawijaya IndonesiaDepartment of Management Faculty of Economics and Business University of Brawijaya IndonesiaThis research aimed to examine the effect of corporate governance on financial performance on bank listed on the Indonesia Stock Exchange (IDX) period 2011-2015, either directly or indirectly through credit risk and operational risk. This research used quantitative approach and the saturated sample method. There were 27 banks that categorized as sample. Furthermore, Partial Least Square (PLS) used for hypotheses and analysis test and free statistic calculation for Sobel Test version 4 for testing credit risk variables and operational risk as mediation. The results of this research showed that improving the implementation of corporate governance can reduced credit risk and operational risk and increased financial performance, whereas, low of credit risk and operational risk can increased financial performance. The results of mediation testing showed that credit risk and operational risk positively mediated the effect of corporate governance on financial performance. This explained that the implementation of good corporate governance can minimized the conflicts of interest and asymmetry information that leads to the cost of non-performing loans and additional capital costs that increased the company profitability.http://jurnal.unmer.ac.id/index.php/jkdp/article/view/1285Corporate GovernanceCredit RiskFinancial PerformingOperational Risk |
| spellingShingle | Mohamad Bastomi Ubud Salim Siti Aisjah The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia Jurnal Keuangan dan Perbankan Corporate Governance Credit Risk Financial Performing Operational Risk |
| title | The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia |
| title_full | The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia |
| title_fullStr | The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia |
| title_full_unstemmed | The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia |
| title_short | The Role of Corporate Governance and Risk Management on Banking Financial Performance in Indonesia |
| title_sort | role of corporate governance and risk management on banking financial performance in indonesia |
| topic | Corporate Governance Credit Risk Financial Performing Operational Risk |
| url | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/1285 |
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