scholarly journals STRUCTURE AND MECHANISM OF CORPORATE GOVERNANCE IN THE INDIAN BANKING SECTOR

2021 ◽  
Vol 9 (06) ◽  
pp. 525-531
Author(s):  
C. Udayakumar Raju ◽  

The banking sector serves as the main source of resource mobilization in developing economies. Due to underdeveloped money markets and capital markets, limited availability of financial instruments and a lack of confidence in the financial system, banks become the dominant financial intermediary in the system. Given the banks intermediary role in providing stability to the financial system, many emerging economies have implemented policies to develop and restructure the banking sector. Good corporate governance is designed to address this problem. Further, government regulations and frequent interventions reduce the incentive for effective monitoring and, at the same time, make supervision (or supervisors) less effective. The present paper an attempt is made to discuss about the Structure and Mechanism of Corporate Governance in the Indian Banking Sector.

2018 ◽  
Vol 5 (2) ◽  
pp. 45-58
Author(s):  
G. A Sri Oktaryani ◽  
I Nyoman Nugraha Ardana P ◽  
Iwan Kusuma Negara ◽  
Siti Sofiyah ◽  
I Gede Mandra

This research examines the effect of Good Corporate Governance (GCG) on firm value by using profitability as intervening variable.  Profitability is proxied by Return On Asset (ROA) and Return On Equity (ROE). This study used a quantitative approach and path analysis. The population consists of 35 firms that were listed in Banking sector of Indonesian Stock Exchange over period 2013 – 2015. There are 34 firms are choosen as samples which has published GCG composit index throughout observation years and has not done corporate action that could affect the stock price directly. The findings show that GCG has positive and significant direct effect on firm value. Furthermore, ROA has positive impact on firm value; meanwhile ROE has negative impact on firm value. The results also show that the better the implementation of GCG the higher the Return on Asset. Moreover, the indirect effect of GCG on firm value through profitability is not significant. Keywords: GCG, profitability, ROA, ROE, firm value.


2019 ◽  
Vol 19 (1) ◽  
pp. 14-37
Author(s):  
Erwindiawan ,

This study aims to determine the effect of Good Corporate Governance and Intellectual Capital Disclosure as independent variable on Earning Response Coefficient as dependent variable with control variable Size, Leverage and Growth.The populations in this research were banking sector companies in ASEAN (Indonesia, Singapura, Malaysia, Thailand and Philipine) and ASEAN CG Scorecard assesment in the period 2015-2016. By using purpose sampling method obtained 73 sample. The method used in this study is causal research methods and from 73 banking companies are used as the samples of this study with the specified criteria. The statistical method being used is multiple linear regression with SPSS software. The result shows that : 1) Good corporate governance has effect on Earning Response Coefficient, 2) Intellectual Capital Disclosure has effect on Earning Response Coefficient.


Author(s):  
Amos N. Dombin

Corporate Governance is a system of financial and other controls in a corporate entity and broadly defines the relationship between the Board of Directors, senior management and shareholders. Globalization and liberalization is sweeping across all sectors of economy with rising problems, risks, challenges more pronounce in developing economies. The position of Nigeria in global Transparency is among top ten from the rear and with continuous rise in the number of business collapsed, only organizations that adopt good Corporate Governance and best practices will survive and attain sustainable growth level locally and internationally in this competitive business environment. This paper examined the concept of Corporate Governance, its background in Nigeria, principles, importance/objectives as well as benefits to the Nigerian economy in terms of local and foreign investments.


2014 ◽  
Vol 3 (1) ◽  
pp. 77
Author(s):  
Riana Christel Tumewu ◽  
Stanly Alexander

ABSTRAK Sejak krisis ekonomi tahun 1997 pelaksanaan tata kelola perusahaan yang baik, atau lebih dikenal dengan Good Corporate Governance (GCG) menjadi isu yang mengemuka di Indonesia. Akibat buruknya tata kelola perusahaan di Indonesia pada masa itu, menyebabkan perekonomian jatuh. Sehingga setiap orang setuju untuk mengcover kesulitan indonesia dimulai dengan tata kelola perusahaan. Objek dari penelitian ini yaitu dampak dari penerapan good corporate governance terhadap ROE. Tujuan dari penelitian ini adalah untuk mengetahui tentang pengaruh penerapn good corporate governance pada kinerja keuangan perusahaan. Sampel dalam penelitian ini adalah perusahaan sektor perbankan yang terdaftar di BEI (Bursa Efek Indonesia) dalam periode 2009-2013. Jumlah sampel yang digunakan sebanyak 16 perusahaan yang diambil melalui purposive sampling. Metode analisis dari penelitian ini menggunakan regresi berganda dan regresi sederhana program SPSS 20. Kata Kunci: Good Corporate Governance, Profitabilitas  ABSTRACT Since the economic crisis 1997 the implementation of good corporate governance being an issue in indonesia. The bad thing of governance’s company in those days causing indonesian economy being slump. So, every one agree to recovered from adversity, indonesia have to start with governance good corporate. The main objective of this research was to determine the effect of implementation of good corporate governance (GCG) to return on equity. The purpose of this research is to know about the influence of empirical evidence of Good Corporate Governance practices to the company's financial performance. The independent variable in this research is the implementation of GCG and the dependent variable is the financial performance using a ratio of profitability. The sample in this study were banking sector companies listed in Indonesian Stock Exchange (IDX) in the periode 2009-2013. The number of sample used were 16 companies listed were taken by purposive sampling. The method of analysis of this research used simple regression with SPSS 20 Program. Keyword: Good Corporate Governance, Profitability


2021 ◽  
Vol 10 (3) ◽  
pp. 290
Author(s):  
Della Ayu Rizki ◽  
Eni Wuryani

The purpose of this study was to determine the effect of implementing good corporate governance on financial performance in banking companies. Proxies for good corporate governance are the board of directors, the independent board of commissioners, the audit committee, external audit quality, and institutional ownership. Measurement of banking financial performance uses Return on Assets (ROA). The sample used is 26 samples of banking sector companies listed on the IDX during 2014-2018. The analysis technique uses multiple regression analysis. The results showed that the board of directors and institutional ownership have an influence on financial performance, while the independent board of commissioners, audit committee, and external audit quality have no influence on financial performance. Keywords: Good Corporate Governance;Financial Performance;Banking Sector.


2019 ◽  
Vol 10 (5) ◽  
pp. 126
Author(s):  
Amzad Hossain ◽  
Farid A. Sobhani ◽  
Normah Omar ◽  
Norazida Mohamad ◽  
Jamaliah Said

Considering the importance of good corporate governance in the banking industry, the study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh. Bangladesh has been selected as a field of study for three reasons. Firstly, banking is the leading sector in Bangladesh. Secondly, banking sector has been highly criticized in the recent times due to Bangladesh Bank scandal. Thirdly, banking is gradually being challenging services in Bangladesh. As a financial intermediary, bank has to ensure good corporate governance for smooth operations and reducing agency problem. As a trustee, bank deals with the money of others through various schemes of investment. Ethical investment known as social responsible investment is an indicator of good corporate governance. A structured questionnaire has been used to gather perceptions of managers of the sample banks. The results suggest that the most important factors for effective CG were the board of directors, auditors and managers of the various departments. The study also finds that risk taking behavior of the bank is influenced by the direction of board of directors. In this study corporate governance variables have been categorized with some sub-indices. Board’s structure with independent directors and well communication with supervisors ensure the efficient risk management practices in the banks where internal audit system and transparent disclosures of the board ensure the ethical investment practices.


2020 ◽  
Vol 9 (2) ◽  
pp. 137
Author(s):  
Rhevinalda Bima Prakarsa ◽  
Winwin Yadiati ◽  
N. R. Handiani Suciati

<em>The purpose of the company is to increase the firm value. But in the last six years, firm value of the banking sector has fluctuated and even tends to decrease. The level of banking health can be expected to increase the firm value. The level of banking health can be measured using Risk Profile (RP), Good Corporate Governance (GCG), Earning, Capital (RGEC) method which is the latest formula after Capital, Asset Quality, Management, Earning, Liquidity (CAMEL). The purpose of this study was to determine effect of the banking health on the firm value. The research method uses partial panel data regression through the determination of estimation model and classical assumption test in advance using 33 banks listed on Indonesia Stock Exchange (IDX). The results showed that there was significant and positive effect between Return on Asset (ROA) and Capital Adequacy Ratio (CAR) on firm value. Beside, there was positive but not significant effect between GCG and risk profile on firm value. The results showed that capital is a factor of business developer and company earnings can show as a signal of quality prospects. The application of GCG is not a significant influence because the results of self-assessment are not in accordance with fraud that occurs. Banks must be able to manage their risk, so that the risk can be an encouragement for them to produce high values.</em>


2018 ◽  
Vol 10 (2) ◽  
pp. 161-174
Author(s):  
Deograsias Yoseph Y.F.

The expanding banking growth is followed by the increasing number of risks that must be faced by banks. Along with the external conditions of the banking sector which  were  increasingly  troubled  by  the  threatening  risks,  Bank  Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly.  As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a  bad  situation  occurs.  With  the  increasingly  complex  risks  in  the  banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.


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