Market Power and Efficiency of Islamic Banking and Conventional Banking in Indonesia

ASEAN Economic Community (AEC) of banking industry requires both Islamic and conventional banking to improve their efficiency because the competition in banking market industry will be more intense. Therefore, this study aims to identify the type of hyphotesis of industrial organization which exists in Islamic and conventional banks in order to investigate their readiness for AEC. The research sampling consists of 10 Islamic banks and 10 conventional banks from January 2009 to December 2016. To measure x-efficiency and scale efficiency, this research uses Data Envelopment Analysis (DEA). Meanwhile, the concentration is measured by Lerner index. The hypothesis is tested by using panel regression. The result shows SCP (Structure-Conduct-Performance) hypothesis is closely applied to Islamic and conventional banks because market concentration significantly influences profitability. RMP (Relative Market Power) hypothesis is also closely applied to Islamic and conventional banking, this indicates Indonesian banking has market power in determining prices and this condition makes the profit higher. RES (Relative Efficiency Structure) and SES (Scale Efficiency Structure) hypothesis do not exist in both conventional and Islamic banks because x-efficiency and scale efficiency do not affect profitability, concentration, and market share simultaneously. Market power and efficiency researches are commonly conducted in conventional banking, however there are only a few research in Islamic banking area. The novelty of this study is the comparison between conventional and Islamic banking in the term of market structure and efficiency

Pengaruh Asimetri Informasi dan Tingkat Disclosure terhadap Biaya Ekuitas dengan Kepemilikan Manajerial sebagai Variabel Moderating (Studi Empiris pada Perusahaan Manufaktur di Bursa Efek Indonesia)

The objective of this research, the first to analyze the effect information asymmetric toward the cost of equity, the second to analyze the effect level of disclosure toward the cost of equity, and the third to analyze the effect the managerial ownership toward the cost of equity of the manufacturing industry which are listed in Indonesian Stock Exchange (IDX) in 2010-2013. This research used samples of 35 manufacturing industry which are listed in Indonesian Stock Exchange. The sample selection method used purposive sampling method. The statistical testing were used by Partial Least Square (PLS. )The result of this research indicate that (1) information asymmetry have influences significanctly toward the cost of equity, (2) the level of disclosure don\u27t have influences significantly toward the cost of equity, and (3) the managerial ownership have influences significantly toward the cost of equity.DOI: 10.15408/ess.v5i2.233

The Impact of Corporate Culture on Marketing Performance

The purpose of this study is to determine the typology of corporate culture of Islamic banking. This study also aims to determine the influence of corporate culture of Islamic banking on marketing performance.This study proves that the corporate culture of Islamic banking that accommodates the Islamic teaching has influence on marketing performance.This study is a comparative study between Bank Muamalat and BNI Syariah. Mixed method is used in this study to analyze collected data. The primary data obtained through survey and interview with employees of the Islamic bank. While secondary data obtained from the annual report documentation, books and articles in scientific journals and other sources that relevant to the research

Asymmetric Information and Non-Performing Financing: Study in the Indonesian Islamic Banking Industry

The purposes of this study are: First, to analyze the indications of moral hazard and adverse selection on Indonesian Islamic commercial banks. Second, to analyze the influence of moral hazard and adverse selection on the Non Performance Financing of Indonesian Islamic banks. Two methods were used for this purpose, a qualitative content analysis approach derived from the results of interviews with the banker from the Islamic commercial banks. Besides that this study also uses Error Correction Model (ECM), with data taken from these listed Islamic banking from 2010 to June 2016. The results show that the indications of moral hazard have a positive effect on the non-performing financing (NPF) in the short run. The indication of the presence of moral hazard occurs at the long run on GDP variable, and the allocation of Murabaha financing (RM) has a positive effect on the mudharabah (FM) profit and loss sharing. The test results also show that adverse selection that represented by the profit sharing rate (PSR) has a positive effect on the level of risk sharing toward non-performing financing (NPF) in the long run.DOI: 10.15408/aiq.v10i2.739

Good Governance in Strengthening the Performance of Zakat Institutions in Indonesia

Good governance is a crucial issue in strengthening the performance of zakat institutions. This research aims at elaborating good governance from the perspective of Islam and analyzing factors contributing to good corporate governance in a number of zakat institutions in Indonesia. Confirmatory Factor Analysis (CFA) is applied to measure the contribution of each indicator to five principles of Good Governance in Zakat institutions; namely, transparency, accountability, responsibility, independence and fairness. With the assistance of Partial Least Square (PLS), version 3, it is shown that the principle of transparency contributes 60.4 percent; the principle of accountability 4.82 percent; the principle of responsibility 6.41 percent; and the principle of independence 53.3 percent. Therefore, it can be concluded that good governance in zakat institutions has been well implemented in some aspects, but have not yet been implemented comprehensively. This research is significant in that it contributes guidelines on zakat management, it provides teaching materials for higher education and a reference for formulating policies and regulations related to the standardization of good governance in zakat institutions.   Keywords: good governance, zakat institutions, performance, Confirmatory Factor Analysis (CFA

Evaluation of different physical treatments in minimally processed green and red pepper (Capsicum annuum L.)

This work evaluates three different conservation methods for red and green fresh-cut peppers. Red and green fruit were processed into sticks and treated as follows: A) water batch immersion (45 oC, 3 min) (TT), B) UV-C radiation (20 kJ m-2) or C) modified atmosphere storage (AM). Other group of pepper sticks were left untreated (control). The sticks were stored at 5 oC during 12 d. Fruit decay, soft-rot and respiratory rate were evaluated during storage. The three treatments were effective to reduce sticks deterioration and the treated fruit evidenced lower respiratory rate at 7 d of storage with respect to control. While the three methods were beneficial to maintain quality, in the red sticks the best results were found with TT and UV, mainly because the AM had less control of the soft-rot at the end of storage. In green sticks all the treatments were equally effective