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Journal : Indonesian Capital Market Review

Women in Top Management and Bank Performance: Evidence from Indonesia Sawitri, Hunik Sri Runing; Untoro, Wisnu; Trinugroho, Irwan
The Indonesian Capital Market Review Vol. 8, No. 1
Publisher : UI Scholars Hub

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Abstract

We investigate the impact of the presence of women in top management on bank performance controlling for bank specific factors, ownership and governance. By making use of sample of 70 Indonesian banks in a cross section study, we find strong evidence that the presence of women in the executives is negatively associated with firm performance. Moreover, we examine the moderating effect of TMT organizational tenure and TMT age. However, only little evidence is found in the effect of our moderating variables.
Deposit Insurance and Bank Liquidity: Does Ownership Structure Matter? Trinugroho, Irwan; Muthmainah, Muthmainah; Ariefianto, Mochammad Doddy; Sutaryo, Sutaryo
The Indonesian Capital Market Review Vol. 8, No. 2
Publisher : UI Scholars Hub

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Abstract

We examine how the level deposit insurance coverage affects bank liquidity. We also test the role of ownership in the relationship between deposit insurance coverage and bank liquidity. This study uses quarterly data of Indonesian banks from Q1:2002 - Q2:2008. We argue that the presence of explicit deposit insurance changes a bank‘s behavior in liquidity management in the form of decreasing asset liquidity. We find some evidence on the negative impact of deposit insurance coverage on bank liquidity. However, little is found on the role of ownership structure. The credibility of deposit insurance system and implicit guarantee are the main policy implications.
CEO Turnover and Firm Performance In Indonesia Setiawan, Doddy; Phua, Lian Kee; Chee, Hong Kok; Trinugroho, Irwan
The Indonesian Capital Market Review Vol. 9, No. 1
Publisher : UI Scholars Hub

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Abstract

We investigated the effect of changes in CEO position on subsequent firm performance by studying 91 CEO turnovers in Indonesia. Our results show that firm performance decreases during the turnover year. Moreover, the incoming CEO does not increase firm performance in subsequent years. Indeed, there is evidence that firm performance decreases after such turnovers. We ultimately conclude that CEO turnovers in Indonesia do not have a positive effect on firm performance. Going further, we divided CEO turnovers into routine and non-routine turnovers on the basis of the turnover process. Both routine and non-routine CEO turnovers show similar results with all samples, in which the incoming CEO in a routine or non-routine turnover does not have a positive effect upon firm performance. Further evidence suggests that the incoming CEO tends to upsize firm assets rather than downsize them.