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Journal : Journal of Business, Management and Social Studies

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia Jovita Ramadhanti; Ivan Destian Butar Butar; Christian Haposan Pangaribuan
Journal of Business, Management, and Social Studies Vol. 1 No. 1 (2021): Journal of Business, Management, and Social Studies (Apr-Jun 2021)
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (690.728 KB) | DOI: 10.53748/jbms.v1i1.5

Abstract

Objective – This study aims to know the impact of corporate governance mechanisms on the non-performing loan of a bank. This study also aims to analyze which corporate governance aspects are significant to the banks’ non-performing loans in Indonesia. Another objective of this study is to examine whether the relationship between corporate governance and non performing loan depends on bank ownership. This study’s corporate governance variables are the board size, board independence, and bank ownership category. This study focuses on the non-performing loan of the banks in Indonesia. Methodology – This study will examine 26 banks in Indonesia listed on the Indonesian Stock Exchange (IDX). It includes both foreign-owned (foreign bank) and domestic banks. The length of the period of observation is seven years, from 2012 to 2018. Panel data of these banks are analyzed using the fixed-effect regression. Findings – The regression result shows that board size and bank ownership category have no significant impact on the non-performing loan, while the board independence impacts non-performing loans negatively. Novelty – This study contributes to the academic literature, specifically on the issue of corporate governance in the banking sector. This study’s result and findings could be used as the reference for other studies and further research on the corporate governance issue. This study will also expand the literature about corporate governance in the Indonesian banking sector since there are still a limited number of studies that discussed this specific matter.
Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises) Anak Agung Kompiyang Ratih Maldini; Pananda Pasaribu; Christian Haposan Pangaribuan
Journal of Business, Management, and Social Studies Vol. 1 No. 1 (2021): Journal of Business, Management, and Social Studies (Apr-Jun 2021)
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (607.283 KB) | DOI: 10.53748/jbms.v1i1.6

Abstract

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.
The Impact of Cash Management Practices toward Financial Performance of Small and Medium Enterprises in Indonesia Nuzulia Amini; Bambang Setiono; Christian Haposan Pangaribuan; Elfindah Princes
Journal of Business, Management, and Social Studies Vol. 1 No. 1 (2021): Journal of Business, Management, and Social Studies (Apr-Jun 2021)
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (622.746 KB) | DOI: 10.53748/jbms.v1i1.7

Abstract

Objective – The importance of SMEs in Indonesia has been becoming the center of attention for the government to help the national economy grow. However, there are still many problems that hinder the potential of SMEs to develop. One of the problems is financial Management in terms of cash management, which can help SMEs have better Management over cash and better performance. Therefore, this study aims to analyze the current two elements of cash management practice, forecasting (FOR) and cash mobilization (CML) done by SMEs in Indonesia and its impact on Return on Assets (ROA) and Gross Profit Margin (GPM) as the financial performance measurements. Methodology – The research uses a quantitative approach from 90 SMEs in Java and Bali islands from April until July 2018. The data were analyzed descriptively using a 4-point scale questionnaire. A regression analysis was added to find out significant relationships between the variables. Findings – The research found that SMEs owners/managers often do forecasting and rarely do cash mobilization practices. The regression analysis shows a significant relationship between cash management practices and ROA but a non-significant relationship between cash management practices and Gross Profit Margin (GPM). Novelty – This research provides an insight of how cash management practices influence the financial performance in the context of SMEs.