Boards attributes and their implications on decision-making process

Ljubojević, Gordana; Dašić, Goran

doi:10.5937/menhottur1801019l

Cited by 3 publications

(2 citation statements)

References 3 publications

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“…Firstly, the board size does not reflect the quality of the board. According to Ljubojević and Dašić (2018), some studies found that board size does not have a significant impact on the processes within the board and its effectiveness. Hence, the board's quality of processes, such as the decision-making and deliberation process, is not determined by the board's size.…”

Section: Regression Results and Discussionmentioning

confidence: 99%

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Ramadhanti¹,

Butar²,

Pangaribuan³

2021

Journal of Business, Management, and Social Studies

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Objective – This study aims to know the impact of corporate governance mechanisms on the non-performing loan of a bank. This study also aims to analyze which corporate governance aspects are significant to the banks’ non-performing loans in Indonesia. Another objective of this study is to examine whether the relationship between corporate governance and non performing loan depends on bank ownership. This study’s corporate governance variables are the board size, board independence, and bank ownership category. This study focuses on the non-performing loan of the banks in Indonesia. Methodology – This study will examine 26 banks in Indonesia listed on the Indonesian Stock Exchange (IDX). It includes both foreign-owned (foreign bank) and domestic banks. The length of the period of observation is seven years, from 2012 to 2018. Panel data of these banks are analyzed using the fixed-effect regression. Findings – The regression result shows that board size and bank ownership category have no significant impact on the non-performing loan, while the board independence impacts non-performing loans negatively. Novelty – This study contributes to the academic literature, specifically on the issue of corporate governance in the banking sector. This study’s result and findings could be used as the reference for other studies and further research on the corporate governance issue. This study will also expand the literature about corporate governance in the Indonesian banking sector since there are still a limited number of studies that discussed this specific matter.

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Section: Regression Results and Discussionmentioning

confidence: 99%

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Ramadhanti¹,

Butar²,

Pangaribuan³

2021

Journal of Business, Management, and Social Studies

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“…Psychological elements have an important role in the process of making investment decisions. Understanding these elements, their role and importance, contributes to the improvement of investment decision-making process (Ljubojević & Dašić, 2018;Vučković, 2010). Individual investors who understand behavioral finance will understand their own behavior, avoid the psychological pitfalls and improve their investment decisions, while institutional investors, thanks to their knowledge in this field, will be better at serving and educating their clients (Statman, 1995, p. 21).…”

Section: Theoretical Formulations Development and Key Features Of Behavioral Financementioning

confidence: 99%

Cognitive Biases as an Integral Part of Behavioral Finance

Leković

2020

Economic Themes

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The complex world of finance is characterised by numerous irrationalities that representatives of behavioral finance seek to explain by cognitive biases (flaws, inclinations or anomalies). Cognitive biases represent imperfect perception of reality and are caused by limited cognitive capacities of decision-makers. By analysing cognitive biases, the paper aims to answer the following questions that standard finance fails: Why active portfolio strategy is still the most influential strategy in portfolio management despite the mounting evidence of unsuitability of its application? Why investors prefer dividend payout over increase in capital value (dividend puzzle)? Why investors ignore benefits of investment diversification and choose to invest in a small number of shares of well-known local businesses (diversification puzzle)? Why investors avoid to sell “loser” shares and thus reduce the tax burden? Why shares of small companies usually bring higher returns compared to shares of large companies? The answers to these questions are obtained by using qualitative research methodology, which also represents the main result of the research.

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Specificity of operation of general interest in the Serbia with special view on water management

Rajnović

2020

Ekonomika poljoprivrede

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In this paper, the author presents the specificities of economic entities performing activities of general interest. In the Republic of Serbia, the state is responsible for the regulating of organized and permanent performance and the development of activities of general interest. In Serbia, the state ensures performing this activity through public companies or capital companies of which it is the sole founder, but it is possible to allow performing the aforementioned activities by entrusting them to a third party. The author conducted a survey related to the necessary conditions for performing activities of general interest by entrusting to a third party a few dozen of economic entities in Serbia. The author considers that, with fulfillment of prescribed conditions, the successful performing activities of general interest can be carried out by privately owned economic entities, since state-owned enterprises have proved to be insufficiently efficient and economical in practice.

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Boards attributes and their implications on decision-making process

Cited by 3 publications

References 3 publications

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Cognitive Biases as an Integral Part of Behavioral Finance

Specificity of operation of general interest in the Serbia with special view on water management

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