STATE-OWNED RURAL BANK PERFORMANCE: DO GOVERNMENT OWNERSHIP AND CORPORATE GOVERNANCE UNIQUENESS MATTER?

Abstract
It has been widely recognized that ownership structure has an impact on firm performance. This paper examines whether rural banks owned by government have poorer performance than those owned by private parties with the emphasis on corporate governance uniqueness of state-owned rural banks. 42 rural banks in Indonesia has been selected as the sample. MANOVA test is used to investigate the difference performance between the two types of the rural banks. The results show that state-owned rural banks perform poorer than their privately-owned counterparts. It is indicated by lower ROA ratio and higher OEOI and NPL ratios. The important implication of this finding suggets that government ownership impede boards of rural banks to implement good corporate governance practices in order to improve their banks performance.
Keywords: ownership types, corporate governance, regulations, state-owned rural banks, performance
Article Metrics:
Others articles
PENGARUH TIPE INDUSTRI, UKURAN PERUSAHAAN, PROFITABILITAS, TERHADAP CORPORATE SOCIAL RESPONSIBILITY
DAPATKAH TEORI FRAUD TRIANGLE MENJELASKAN KECURANGAN DALAM LAPORAN KEUANGAN?
Model Deteksi Kecurangan Berbasis Fraud Triangle
PENGAWASAN IMPELEMENTASI “GREEN ACCOUNTING” BERBASIS UNIVERSITY SOCIAL RESPONSIBILITIES (USR) DI UNIVERSITAS NEGERI SEMARANG SERTA STUDI KOMPARASI UNIVERSITAS SE-KOTA SEMARANG
PENGARUH KARAKTERISTIK PERUSAHAAN TERHADAP LAMANYA WAKTU PENYELESAIAN AUDIT (AUDIT DELAY) PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA
PENGARUH RISIKO LITIGASI TERHADAP MANAJEMEN LABA DENGAN KUALITAS AUDIT SEBAGAI VARIABEL MODERATING
Last update: 2021-03-06 03:36:09
No citation recorded.
Last update: 2021-03-06 03:36:10
No citation recorded.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).