Politically Connected Banks: Some Indonesian Evidence

Sutopo, Bambang; Trinugroho, Irwan; Damayanti, Sylviana Maya

doi:10.33736/ijbs.491.2017

Cited by 15 publications

(23 citation statements)

References 32 publications

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“…Looking at the evidence above, NPL is considered salient. This also supports the previous studies such as those by Yaqinah (2020), Sutopo et al (2017), Iramani et al (2018), andGhalib (2018). They found that NPL is an important factor to increase the bank's performance that is ROA.…”

Section: Relationship Between Variablessupporting

confidence: 92%

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Determinants of the Profits in Regional Development Banks in Indonesia

Suhartono

Ghalib

2020

PSSJ

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Regional Development Banks (BPDs) should develop their regional governments' economy by increasing their performance. This study attempts to determine the effect of GCG and other variables on the banks' performance indicated by the profit. This study used 10 determiners as the independent variables such as NPL, LASSET, LTA, ETA, FBIR, TDR, LDR, NIM, DGCG, and GCGI, while the dependent variable is ROA. The data were taken from the BPD's financial reports from 2014 to 2019. There were 26 BPDs as the sample based on the stipulated criteria. The results show that NPL is an essential factor for increasing the banks' performance. Next, the time deposit ratio to total deposit also has a positive effect but not significant. The LTA ratio is negative but not significant, while GCGI has a significant effect. Therefore, NPL, and GCG are the dominant factors in determining the banks’ performance. The modeling constant values are all significant, indicated by the risk level ranging from 36-40%. It can be concluded that NPL is an important variable in determining risk for banks, so is the GCG index that can also affect the banks' performance. Therefore, BPDs should pay attention to their NPL and GCG in order to increase their performance

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Section: Relationship Between Variablessupporting

confidence: 92%

“…There have been some studies on GCG so far, but few are related to the banking sector. Sutopo et al (2017) used corruption and political aspect towards BPD performance. Yet, the total deposit is also influential.…”

Section: Framework Of the Studymentioning

confidence: 99%

Determinants of the Profits in Regional Development Banks in Indonesia

Suhartono

Ghalib

2020

PSSJ

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“…However, the effect may be significant for foreign firms. It is in line with the previous study of Sutopo, Trinugroho, & Damayanti (2017) in which the effect of political connections on bank performance is more pronounced for foreign-controlled banks.…”

Section: Publicness Ownership and Firm Performancesupporting

confidence: 92%

Ownership Structure and Publicness of Firms: A Literature Review

Untoro

2017

Jurnal Keuangan Dan Perbankan

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There has been an extensive body of literature studying the link between ownership structure and firm performance. Some of them focus on the performance difference across ownership types (i.e. state vs foreign vs private domestic). On the other hand, some studies stress ownership structure on the fraction of ownership based on agency theory (i.e. majority versus minority) and its derivatives (e.g. ultimate ownership, cross listing). However, an important element has not been explored while discussing ownership structure of firms which is the concept of publicness of firms. Publicness is important to explain to which extent an organization is related with governmental institutions. In fact, there are many engagements of firms with governmental bodies (e.g. deposit and lending from and to public organization). In this present paper, I provide a comprehensive literature review on the intersection between publicness level of firms and ownership structure. Going deeper, I also provide a literature review on the measurement of publicness and postulate a model to link between these two and firm performance as a venue for future studies. ABSTRAKBanyak literatur yang mempelajari hubungan antara struktur kepemilikan dan kinerja perusahaan. Beberapa di antaranya fokus pada kinerja perusahaan dengan tipe kepemilikan yang berbeda (yaitu pemerintah vs asing vs swasta domestik). Di sisi lain, beberapa studi menekankan struktur kepemilikan pada pemecahan kepemilikan berdasarkan teori agensi (yaitu mayoritas versus minoritas) dan derivatifnya (misalnya ultimate ownership, cross listing). Namun, elemen penting tentang struktur kepemilikan perusahaan dalam konsep publicness perusahaan belum banyak dieksplorasi. Publicness penting untuk menjelaskan sejauh mana sebuah organisasi berhubungan dengan lembaga pemerintah. Pada kenyataannya, ada banyak keterlibatan perusahaan dengan lembaga pemerintah (misalnya simpanan dan pinjaman dari dan ke organisasi publik). Tulisan ini, memberikan tinjauan literatur secara komprehensif tentang hubungan antara tingkat publicness perusahaan dan struktur kepemilikan. Lebih jauh, saya juga memberikan tinjauan literatur tentang pengukuran publicness dan mendalilkan model untuk menghubungkan antara kedua hal tersebut dengan kinerja perusahaan, sebagai wahana bagi penelitian selanjutnya.

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“…Besides, this study focuses on SOEs and all sectors by controlling the industrial sector and SOEs. SOE banks' profitability is higher than the profitability of non-SOEs (Sutopo, Trinugroho, and Damayanti, 2017). Meanwhile, there is no difference between SOEs'SOEs' profitability and non-SOEs'non-SOEs' profitability when comparisons were made for all industrial sectors (Ardila, Saputra, Adiati, and Sutopo, 2018), and the differences or similarities between the two types of business entities can depend on the industry (Singh, 2019).…”

Section: Debt Financing and Profitabilitymentioning

confidence: 98%

Is The Higher Debt Level Profitable for State-Owned Enterprises?

Sutopo¹,

Arum²,

Siddi³

2021

IJEBA

Self Cite

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Purpose: The need for more significant debt financing to achieve higher profitability of State-Owned Enterprises (SOEs) is an issue that has recently attracted public attention in Indonesia. This study examines how SOE debt financing is associated with profitability when the debt level is relatively low and relatively high. Design/Methodology/Approach: The sample includes 514 SOE observations in the 2014-2018 period. Regression models are used to test the research hypotheses. Findings: The regression results show a positive association between debt financing and profitability when debt levels are low. On the other hand, the results show that the relationship is negative when debt levels are high. These results are consistent after controlling for the size, type, and industrial sector of the SOEs and observation year. Practical Implications: These findings suggest the need for controlling SOE debt financing to achieve SOE objectives in generating profits in Indonesia. Originality/value: By splitting the sample into low and high debt levels, this study presents findings that can show when debt financing can increase profitability and reduce SOEs' profitability.

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Politically Connected Banks: Some Indonesian Evidence

Cited by 15 publications

References 32 publications

Determinants of the Profits in Regional Development Banks in Indonesia

Determinants of the Profits in Regional Development Banks in Indonesia

Ownership Structure and Publicness of Firms: A Literature Review

Is The Higher Debt Level Profitable for State-Owned Enterprises?

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