PENGARUH STRUKTUR MODAL, KARAKTERISTIK INTERNAL DAN EKSTERNAL BANK TERHADAP KINERJA BANK UMUM SYARIAH DI INDONESIA DAN MALAYSIA

The purpose of this study is to examine the effect of capital structure, internal and external characteristics on Islamic Bank’s performance. As newcomers, Islamic banks are facing a trade off between use high capital ratios or depend on deposits and Islamic bonds (Sukuk) The population in this study is the entire Islamic banks that are in Indonesia and Malaysia in 2011-2014. The total amount of data in this study was 84. After going through the stage of data processing, there are no outliers of data that should be excluded from the study, so the proper amount of the final sample is observed still 84. The empirical result of this study show that capital structure, fund source management, fund use management, capital risk, GDP growth and financial market structure have a significant effect on performance of Islamic Banks. And another independent variables such as operational efficiency, size, inflation, taxation and local market effect have no effect on performance of Islamic Bank

Globalization and Firms' Financing Choices: Evidence from Emerging Economies

This paper studies the relation between firm's financing choices and financial globalization. Using an East Asian and Latin American firm-level panel for the 1980s and 1990s, we study how leverage ratios, debt maturity structure, and sources of financing change when economies are liberalized and when firms access international capital markets. We find that debt-equity ratios do not increase after financial liberalization. Debt maturity shortens for the average firm when countries undertake financial liberalization. However, domestic firms that actually participate in international capital markets extend their debt maturity. Financial liberalization has less effects on firms from countries with more developed domestic financial systems. Leverage ratios increase during crises.http://deepblue.lib.umich.edu/bitstream/2027.42/39772/3/wp388.pd

The effect of firm characteristics and good corporate governance characteristics to earning management behaviors

Purpose: This research is carried out to investigate the influence of firm characteristics and good governance characteristics to earnings management behavior. Furthermore, the research is expanded to determine the predictive discretionary accruals models in Indonesia. The author utilizing firm listed in Indonesia Stock Exchange during 2014 – 2018 as research object. Design/methodology/approach: The research samples is selected by utilizing the purposive sampling method. In addition, the data analyze is conducted through E-Views version 10. Three discretionary accruals models is used to define earnings management behavior. The research assumed firm characteristics factors such as financial performance, firm size, leverage, and share issuance activity and good governance characteristics such as board of directors’ size and auditor’s size. Findings: The research discovers that firm characteristics can accentuate the earnings management behavior significantly. In other hand, in good corporate governance characteristics only big four auditor is significant. The research also find that discretionary accruals model of Jones, Dechow, and Kothari are predictive in Indonesia. Practical implications: The discoveries of this research provide understanding for investors that enforcement on both governance and monitoring mechanism are essential approach to reduce earnings management behavior. Originality/value: The research investigated three models of discretionary accruals’ capability in predicting earnings management behavior, and found out all discretionary accruals model are still relevant to be use in predictive to define earnings management behavior in Indonesia.peer-reviewe

Characterization of Early and Late Adopters of ATM Card in Indian Banking Industry

The present study deals with affect of adoption pattern of the ATMs by banks on its characteristics. With the exploration of various characteristics of the banks like Size, Profi tability, Efficiency, Cost of Operations, Asset quality and Credit risk, Financing Pattern, Diversifi cation and Age etc.; the study has tried to differentiate between the early and late adopter category of the banks regarding ATM cards. The banks have been categorized into early and late adopters on the basis of their adoption period. For this purpose, 50 scheduled commercial banks consisting of 27 Public Sector Banks and 23 Private Sector Banks have been taken as sample to investigate the various aspects of and early adopter banks in comparison to late adopter banks. The time period of the study is 20 years i.e. from 1991 to 2010. It can be concluded that the initiators and fi rst movers take advantage over the late adopters and laggards. They have found to perform better in terms of various parameters. Overall, the early adopter banks are larger in size, more diversifi ed, having lesser branches, more market share and wide ATM network as compared to late adopter ones. Thus, the empirical results evidently reveal that the both the groups have their own different characteristics

ADB–OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises

During the era of global financial uncertainty, stable access to appropriate funding sources has been much harder for small and medium-sized enterprises (SMEs). The global financial crisis impacted SMEs and entrepreneurs disproportionately, exacerbating their traditional financing constraints. The financial conditions of many SMEs were weakened by the drop in demand for goods and services and the credit tightening. The sovereign debt crisis that hit several European countries contributed to further deterioration in bank lending activities, which negatively affected private sector development. The global regulatory response to financial crises, such as the Basel Capital Accord, while designed to reduce systemic risks may also constrain bank lending to SMEs. In particular, Basel III requires banks to have tighter risk management as well as greater capital and liquidity. Resulting asset preference and deleveraging of banks, particularly European banks with significant presence in Asia, could limit the availability of funding for SMEs in Asia and the Pacific. Lessons from the recent financial crises have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their national financial system. Improving SME access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies. The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have recognized that it is crucial to develop a comprehensive range of policy options on SME finance, including innovative financing models. With this in mind, sharing Asian and OECD experiences on SME financing would result in insightful discussions on improving SME access to finance at a time of global financial uncertainty. Based on intensive discussions in two workshops organized by ADB in Manila on 6–7 March 2013 and by OECD in Paris on 21 October 2013, the two organizations together compiled this study report on enhancing financial accessibility for SMEs, especially focusing on lessons from the past and recent crises in Asia and OECD countries. The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development

Corporate Responses to Currency Depreciations: Evidence from Indonesia

This paper examines the impact of macro fluctuation on firm’s balance sheet to understand firm’s net worth as well as the corporate distress probability. We argue that debt policies could be pro-cyclical, since it enhances corporate distress risk when currency depreciation comes.currency depreciation, firm performance, debt ratio

Default Risk On Islamic Banking In Indonesia

Stability of financial institutions is a crucial issue amid the economic crisis that hit the US and Europe. Islamic banking in Indonesia as financial institutions are also required to have good stability in order to maintain the stability of the national economy. The aim of this research is to determine the stability of Islamic banking in Indonesia, and understand the factors that affect the stability. Stability of Islamic banking will be measured using Merton model to estimate the Probability Default (PD). Panel data regression was used to estimate the factors that affect the stability of Islamic Banking. The object of this research is 10 Islamic banking in Indonesia that meet the specified criteria. From the analysis of the Merton model, the research found that the stability of Islamic banking in Indonesia is not good enough. This can be seen from the value of the probability default on Islamic banking which still above 0.5. However, based on the trend, the probability default of Islamic banking has decreased from year to year. Some of the variables that influence the stability of Islamic banking is asset and BI rate (SBI)

Resolution of corporate distress - evidence from East Asia's financial crisis

The widespread financial crisis in East Asia caused large economic shocks, which varied by degree across the region. That crisis provides a unique opportunity for investigating the factors that determine the use of bankruptcy processes in a number of economies. The authors study the use of bankruptcy in Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, the Philippines, Singapore, Taiwan (China), and Thailand. These economies differ in their institutional frameworks for resolving financial distress, partly because of the different origins of their judicial systems. One difference is the strength of creditor rights, which the authors document. They expect that differences in legal enforcement and judicial efficiency should affect the resolution of financial distress. Using a sample of 4,569 publicly traded East Asian firms, they observe a total of 106 bankruptcies in 1997 and 1998. They find that: 1) The likelihood of filing for bankruptcy is lower for firms with ownership links to banks and families, controlling for firm and country characteristics. 2) Filings are more likely in countries with better judicial systems. 3) Filings are more likely where there are both strong creditor rights and a good judicial system. These results alone do not allow the authors to address whether increased use of bankruptcy is an efficient resolution mechanism.Economic Theory&Research,International Terrorism&Counterterrorism,Strategic Debt Management,Payment Systems&Infrastructure,Banks&Banking Reform,Economic Theory&Research,Financial Intermediation,Housing Finance,Strategic Debt Management,Banks&Banking Reform

Industry Evolution in Developing Countries: the Indonesian Pulp and Paper Industry

Industry, evolution, developing countries, Indonesia, industry