Jurnal Ilmiah Akuntansi dan Bisnis
Vol 15 No 1 (2020)

Effect of Governance on the Efficiency of the Indonesian Banking Industry

Fransiska Novina Hayu Indrianti (Faculty of Economics and Business, Brawijaya University, Indonesia)
Sutrisno T. (Faculty of Economics and Business, Brawijaya University, Indonesia)
Erwin Saraswati (Faculty of Economics and Business, Brawijaya University, Indonesia)



Article Info

Publish Date
20 Jan 2020

Abstract

This study aims to examine observations and determine the effects of corporate governance on the efficiency of the Indonesian banking sector. The research calculated DEA efficiency and performed logistic regression, with a total sample of 150 observations. Results show that independent commissioners, the educational level of commissioners, the board of commissioners meeting, and the term of office of the commissioners all have a significant impact on improving the efficiency of the banking industry. Conversely, the large number of commissioners as well as the gender differences among them do not have any effect on banking efficiency. These findings indicate that authorities should not focus on the size of the board and the gender differences among the board commissioners in finding ways to increase or decrease a firm’s efficiency. The results of this study can contribute to academic research through agency theory and resource dependence theory as well as provide insights that can be used by practitioners. Keywords: Governance; banking efficiency; DEA

Copyrights © 2020






Journal Info

Abbrev

jiab

Publisher

Subject

Economics, Econometrics & Finance

Description

JIAB exists to publish high quality research papers in accounting, corporate finance, corporate governance and their interfaces. The interfaces are relevant in many areas such as financial reporting and communication, valuation, financial performance measurement and managerial reward and control ...