PENGARUH CORPORATE GOVERNANCE DAN BENTUK KEPEMILIKAN TERHADAP KINERJA KEUANGAN BANK DI INDONESIA

Abstract

This study examines more precisely the effects of three exogenous constructs external corporate governance, internal corporate governance and the type of ownership on bank performance. Type of ownership explained the agency problem in the form of corporate governance by grouping on three ownership characteristics: (a) dispersed ownership (b) closely held ownership and (c) the state-owned bank. Besides having direct effect to the bank performance, its type of ownership moderating the effects of the other two exogenous constructs to the bank performance. This study builds a dataset on bank ownership and bank performance covering approximately 76 banks in Indonesia consists of 9 foreign private bank, 13 joint venture bank, 4 state-owned banks, 17 private listed banks and 33 private unlisted banks over the 1999-2004 period. Generally, empirical research on the effect of corporate governance and type of ownership to the bank performance can be explained by agency theory even banking industry faces more complex dimension of principal agency problems that cannot be found in non-financial banking industry. It is found that degree of agency problem in dispersed ownership as represented by state-owned bank is higher compared with concentrated ownership. We also find that, as in developing countries, foreign banks plays a useful role in terms of good external corporate governance mechanism followed by private listed bank, private unlisted bank and state-owned bank although we do not find any effect on internal corporate governance mechanism except internal corporate governance-owner for Private-unlisted Bank