The influence of executives’ characteristics on bank performance: The case of emerging market

Abstract

This research is expected to provide information for the benefits of Bank SulutGo and also the Government of North Sulawesi in forming the composition of the board of directors and board of commissioner and all bank officials in SulutGo Bank. The population and samples are SulutGo Bank officials consisting of boards of commissioners, boards of directors, division leaders and branch leaders of all the Banks of SulutGo. They consist of 4 Commissioners, 5 Directors, 2 Heads of Department, 19 Heads and Divisional Representatives, plus 94 head offices (head office, branch offices and sub-branch offices) scattered throughout the provinces of North Sulawesi, Gorontalo, DKI Jakarta and East Java. In measuring the performance of BPD, Capital Adequacy Ratio (CAR), Return on Assets (ROA) and Return on Equity (ROE) are employed. The results show age, education level, work period and gender has a positive relationship with CAR, but there is no relationship with ROA, ROE and Total Assets. The same with the F-test, simultaneously age, education level, work period and gender has a positive relationship with CAR but there is no relationship with ROA, ROE and Total Assets.

The Influence of Top Management Team (Tmt) Characteristics Toward Indonesian Banks Financial Performance During the Digital Era (2014-2018)

“…). The results show that all characteristics have positive significant influences on BPD performance Saerang, Tulung, & Ogi (2018). also provides information regarding effective composition of the board of directors and board of commissioner and all bank officials in SulutGo Bank.…”

“…Referring to Tulung and Ramdani (2016) and Saerang et al (2018), the measurement to identify background diversity is to groups them based on professionals' bankers or experienced management team, Academician, Military and Bureaucrats; Secondly, level education is grouped from high school diploma to doctoral degree. The average Age of the TMT members is classified based on (Howe & Strauss, 1991) classification of generation, starts from silent generation (1920s-1945), Baby Boomers (1965-1976), Generation (1965-1976), Generation Y or Millennials (1977-1995.…”

Does Board Diversity Affect Company Value?

“…Age is a diversity measure that identifies levels of cognition, knowledge, and value, as young managers may possess different types and levels of information/knowledge, experiences, and perspectives to senior ones, especially about their corporate decisionmaking on strategic issues (Saerang et al, 2018). In terms of signal theory, the age of the young board of commissioners brings a positive signal to investors because their young age indicates the courage to take risks and new ideas for the survival of the company.…”

“…Conversely, a different result was found by Kusumatuti et al (2007), who showed that the age of the board of commissioners and directors did not increase firm value (i.e., did not have an impact). They contend that the reason for this is that the older a person is, the more health problems they face, and the poorer are their intellectual abilities Pegels and Yang (2000, p. 697) suggested that older managers tend to avoid risk, while younger ones, who tend to take more risk and be more innovative, contribute positively to firm value (Saerang et al, 2018). The same result was obtained by Darmadi (2011), which states that board age has a positive effect on firm value where younger boards of commissioners tend to be brave in taking risks and making strategic changes to improve company performance.…”

Factors Affecting Profitability of Pharmaceutical Companies Listed in Indonesia Stock Exchange

“…According to Kasmir (2014), Yuniningsih et al (2018), Wibowo et al (2019) profitability ratios are ratios used to assess a company's profits in seeking a profit. This ratio provides a measure of the level of management effectiveness of a company as indicated by profits generated from sales and income (Nezami et al, 2018;Kajananthan & Velnampy, 2018;Saerang et al, 2018) According to Tandelilin (2010) one of the important in.dicators for assessing company prospects in the future is to see how far the company's profitability grows, so that this ratio is a factor that gets important attention for investors in assessing a company.…”