2020
DOI: 10.15294/jejak.v13i1.21458
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The Influence of Market Structure in Indonesian Banking Performance

Abstract: There are three hypotheses about structure-conduct-performance paradigm; traditional hypothesis, differentiation hypothesis and efficiency hypothesis. The objective of this research is to examine how strong the influence of market structure in banking performance. This study uses the fix effect model by applying the Weiss model. This research also tries to prove whether market share and concentration in the banking industry as a proxy to efficiency. The result of the panel data analysis conducted on a sample o… Show more

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Cited by 8 publications
(8 citation statements)
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References 6 publications
(12 reference statements)
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“…This condition is unfavorable for customers because the interest rates will not be determined by the bank's power under competitive bank conditions. The results of this study are not in line with a study by Naylah & Cahyaningratri (2020) which demonstrated a negative and significant relationship between market power and profitability.…”
Section: The Response Of Financial Performance On Shock/innovation Of...contrasting
confidence: 99%
“…This condition is unfavorable for customers because the interest rates will not be determined by the bank's power under competitive bank conditions. The results of this study are not in line with a study by Naylah & Cahyaningratri (2020) which demonstrated a negative and significant relationship between market power and profitability.…”
Section: The Response Of Financial Performance On Shock/innovation Of...contrasting
confidence: 99%
“…While the market share of individual banks has a significant positive effect on the profitability of the banking industry, from these findings that the banking industry in Indonesia adheres to the efficiency hypothesis and the market structure is oligopoly. This finding is the same as research conducted by Naylah (2010) who concluded that the market structure in Indonesia is oligopoly and market share is the strongest factor influencing banking performance in Indonesia. The banking market structure in Indonesia is likely to become a monopoly in the future.…”
Section: Introductionsupporting
confidence: 87%
“…Bank dianggap aman apabila bank tersebut berhasil menjalankan fungsi-fungsinya dengan baik artinya, mampu menciptakan rasa percaya kepada masyarakat, dan melaksanakan fungsi intermediasinya, serta berkontribusi terhadap kelancaran arus pembayaran, termasuk kebijakan moneter (Naylah & Cahyaningratri, 2020). Dengan adanya kepercayaan tersebut, bisnis perbankan akan berkembang pesat sehingga meningkatkan nilai sahamnya.…”
Section: Pendahuluanunclassified