Ownership concentration and bank risk (A study on banking sectors in Indonesia)

Karyani, Etikah and Utama, Sidharta (2015) Ownership concentration and bank risk (A study on banking sectors in Indonesia). Journal of Economics, Business, and Accountancy Ventura, 18 (1). pp. 189-200. ISSN 2087-3735

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The purpose of this study is to test empirically the relationship between ownership concentration and risk taking by banks which are proxied by the CAR and LDR (liquidity ratio). The study was motivated by the limited previous studies that analyze the structure of ownership in financial institutions and the weaknesses in sampling. Our analysis focused on Indonesia because this country has implemented the Basel Accord II standards successfully. This regulatory compliance is expected can control banking risk. Using data from 2009 until 2013 and panel data. We found that the ownership concentration become important determinants of bank liquidity. These findings are expected to provide policy guidance for regulators, especially relating to the ownership structure of the bank. However, the ownership concentration proved to be involved in the management decision to risk taking in banks.

Item Type: Article
Uncontrolled Keywords: Ownership Concentration, Capital Regulatory, Liquidity Risk, Risk Taking
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Depositing User: Mrs. Etikah Karyani
Date Deposited: 26 Jan 2021 12:54
Last Modified: 26 Jan 2021 12:54
URI: http://repository.ibs.ac.id/id/eprint/1577

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