Faisal Faisal
University of Syiah Kuala, Banda Aceh

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The effect of bank monitoring on profit efficiency of banking companies listed in the Indonesian stock exchange Moulana Rizqi; Faisal Faisal
Proceedings of AICS - Social Sciences Vol 7 (2017): 7th AIC in conjuction ICMR 2017 Universitas Syiah Kuala October 2017
Publisher : Proceedings of AICS - Social Sciences

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Abstract

This study aims to examine the influence of bank monitoring on profit efficiency of banking companies in the Indonesian Stock Exchange. This paper uses panel data analysis of 29 companies listed in the Indonesian Stock Exchange during the period 2010-2014. Specific fixed-effect regression models for each bank were used in this study to estimate the value of bank monitoring variables. To obtain accurate results, this study uses some control variables, which are bank size, bank profitability, banking liquidity, market share, and bank capital. This study also uses a two-stage research method. First, bank efficiency is estimated using Stochastic Frontier Analysis (SFA). Second, the scores obtained from the first stage are regressed with the bank monitoring variable and a number of control variables using the tobit regression technique. This research finds that bank monitoring variable has a positive and significant effect on the profit efficiency of banking companies listed in the Indonesian Stock Exchange. The results of this study prove that banks allocating more resources for monitoring can earn more efficient profit. This study also provides empirical evidence that bank monitoring can increase the value of banking companies in Indonesia.
The impact of abnormal return towards dividend changes with private information as a moderating in Indonesia Nurul Husna; Faisal Faisal
Proceedings of AICS - Social Sciences Vol 7 (2017): 7th AIC in conjuction ICMR 2017 Universitas Syiah Kuala October 2017
Publisher : Proceedings of AICS - Social Sciences

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (376.51 KB)

Abstract

This study examines the impact of abnormal return towards dividend changes with private information as a moderating in Indonesia. The variables used in this study are abnormal return, private information, and dividend changes. Analysis model in this study is Moderated Regression Analysis (MRA). By using purposive sampling technique, there are 27 stocks as a research sample in Indonesia Stock Exchange 2013-2016. The result of this research shows that abnormal return has positive and significant impact towards dividend change. In other hand, private information in stock price has a negative and significant impact towards dividend change. The interaction analysis result shows that private information weakens the impact of abnormal return towards dividend changes. This study highlights private information in stock prices as an important determinant of dividend policy.