The effects of Tier-1 capital, risk management, and profitability on performance of Indonesian Commercial Banks

2018 ◽  
Vol 60 (5) ◽  
pp. 1074-1086
Author(s):  
Erna Sari ◽  
Suhadak Suhadak ◽  
Sri Mangesti Rahayu ◽  
Solimun Solimun
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Research Result ◽  
Equation Modeling ◽  
Content Type ◽  
Tier 1 ◽  
Negative Effect ◽  
Research Findings ◽  
Positive Effect ◽  
Tier 1 Capital

Purpose This research aims to examine the effect of Tier-1 capital, risk management, and profitability on performance of Indonesia commercial banks. Design/methodology/approach The research population consisted of all commercial banks listed in the Indonesia Stock Exchange periods of 2010 to 2014 with a total of 42 companies. The statistical analysis for testing the hypothesis using structural equation modeling (SEM) covariance based using WarpPLS. Findings Research result shows that Tier-1 capital has a positive effect on capital on risk management; risk management has a positive effect on performance, but risk management does not have an effect to profitability; profitability has a positive effect on performance; and Tier-1 capital has a negative effect on profitability. On the other hand, profitability has a negative effect on Tier-1 capital and performance has a positive effect on Tier-1 capital, whereas Tier-1 capital does not have an effect on performance. Originality/value The originality of this research can be seen from the causal relationship between the effects of Tier-1 capital, risk management and profitability on performance of commercial banks in the context of stock performance among Indonesia commercial banks. In addition, previous research findings remain inconsistent between one another. By conducting this research, it is expected that more consistent research findings than the previous ones can be generated. Sluggish global economic conditions which result in declined bank performance are an interesting topic to investigate.

The effects of Tier-1 capital to risk management and profitability on performance using multiple fixed effect panel data model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zulkifli Rangkuti
Keyword(s):  
Risk Management ◽  
Panel Data ◽  
Indirect Effect ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Content Type ◽  
Tier 1 ◽  
Research Findings ◽  
Positive Direct ◽  
Tier 1 Capital

Purpose This paper aims to examine the effects of Tier-1 capital toward risk management and profitability on the performance of Indonesian Commercial Banks. Design/methodology/approach The research population consisted of all commercial banks listed on the Indonesia Stock Exchange. The data were in the form of financial statements of commercial banks for the periods of 2012 to 2016 with a total of 42 companies (bank). From a total of 42 commercial banks listed in the Indonesia Stock Exchange, not all of them met the criteria. Commercial banks that meet these criteria are as many as 28 banks are sampled research. Findings Tier-1 capital has a positive direct effect on risk management, Tier-1 capital has a positive indirect effect on profitability with risk management as a mediation variable, risk management has a positive direct effect on profitability, Tier-1 capital has a positive indirect effect on performance with risk management and profitability as mediation variables, risk management has a positive indirect effect on performance with as mediation variable and profitability has a positive impact on performance. Originality/value The originality of this research can be seen from the causal relationship between the effects of Tier-1 capital, risk management and profitability on the performance of commercial banks in the context of stock performance among Indonesia commercial banks. Also, the analysis tools using multiple fixed effect panel data models in this research as a novelty in this research. In addition, previous research findings remain inconsistent with one another. By conducting this research, it is expected that more consistent research findings than the previous ones can be generated. Sluggish global economic conditions, which result in declined bank performance are an interesting topic to investigate. The paper uses an original sample, 28 Indonesian banks in 2012-2016. Also, it links Tier 1 capital with risk management and performance in a novel theoretical framework.

The impact of counterfeit risk management on healthcare supply chain performance: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Falasca ◽  
Scott Dellana ◽  
William J. Rowe ◽  
John F. Kros
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
The United States ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Healthcare Organizations ◽  
Content Type ◽  
Overall Performance ◽  
The Impact ◽  
Positive Effect

PurposeThis study develops and tests a model exploring the relationship between supply chain (SC) counterfeit risk management and performance in the healthcare supply chain (HCSC).Design/methodology/approachIn the proposed theoretical model, HCSC counterfeit risk management is characterized by HCSC counterfeit risk orientation (HCRO), HCSC counterfeit risk mitigation (HCRM) and HCSC risk management integration (HRMI), while performance is represented by healthcare logistics performance (HLP) and healthcare organization overall performance (HOP). Partial least squares structural equation modeling (PLS-SEM) and survey data from 55 HCSC managers are used to test the research hypotheses.FindingsHCRO has a significant positive effect on HCRM, while HCRM has a positive impact on HRMI. With respect to HLP, HCRM has a nonsignificant effect, while HRMI has a significant impact, thus confirming the important mediating role of HRMI. Finally, HLP has a significant positive effect on the overall performance of healthcare organizations.Research limitations/implicationsAll study participants were from the United States, limiting the generalizability of the study findings to different countries or regions. The sample size employed in the study did not allow the authors to distinguish among the different types of healthcare organizations.Originality/valueThis study delineates between a healthcare organization's philosophy toward counterfeiting risks vs actions taken to eliminate or reduce the impact of counterfeiting on the HCSC. By offering firm-level guidance for managers, this study informs healthcare organizations about addressing the challenge of counterfeiting in the HCSC.

scholarly journals RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

2021 ◽  
pp. 26-41
Keyword(s):  
Commercial Banks ◽  
Annual Reports ◽  
Data Set ◽  
Liquidity Management ◽  
Significant Negative Effect ◽  
Tier 1 ◽  
Negative Effect ◽  
Liquidity Measures ◽  
Positive Effect ◽  
Relative Standing

This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs.

scholarly journals RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

2021 ◽  
pp. 26-41
Keyword(s):  
Commercial Banks ◽  
Annual Reports ◽  
Data Set ◽  
Liquidity Management ◽  
Significant Negative Effect ◽  
Tier 1 ◽  
Negative Effect ◽  
Liquidity Measures ◽  
Positive Effect ◽  
Relative Standing

This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs.

The effect of consumer-based brand authenticity on customer satisfaction and brand loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adem Uysal ◽  
Abdullah Okumuş
Keyword(s):  
Customer Satisfaction ◽  
Brand Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Content Type ◽  
Brand Authenticity ◽  
Negative Effect ◽  
The Difference ◽  
Positive Effect

PurposeThe purpose of this study was to determine the effect of consumer-based brand authenticity (CBBA) on customer satisfaction (CS) and brand loyalty (BL). The moderating effect of the variable “alternative attractiveness” in the relationship between CS and BL was further investigated. The study compared and analyzed the difference between global sportswear brands and domestic ones and the difference between global chocolate brands and domestic ones in terms of CBBA, CS, BL and attractiveness of alternatives (AA).Design/methodology/approachStructural equation modeling and multigroup analysis were conducted in order to analyze the data collected from 600 consumers via face-to-face survey.FindingsThe results showed that quality commitment and heritage-sincerity, which are subdimensions of CBBA, had a significant positive effect on CS. Additionally, both of them affected CS differently in the comparison of the global brands with the domestic ones. Furthermore, CS had a significant positive effect on BL, and AA had a negative effect on BL.Originality/valueThis study deepens the insights into the effects of antecedents of CBBA on CS and BL, enhancing the research with quantitative analysis through two different product groups. The study provides important cues on which antecedents of CBBA help to strengthen the authenticity of brands of Turkish and global origin, and also differs in that it examines to what extent the effect of CBBA on CS and BL varies across global and domestic brands.

scholarly journals Effect of perception of COVID-19 and nonpharmaceutical intervention on desire and behavioral intention in touristic travels in Turkey

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uzeyir Kement ◽  
Sinan Çavuşoğlu ◽  
Bülent Demirağ ◽  
Yakup Durmaz ◽  
Aziz Bükey
Keyword(s):  
Behavioral Intention ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Tourism Sector ◽  
Negative Effect ◽  
And Control ◽  
Positive Effect ◽  
Practical Implications ◽  
Made In

PurposeThis study analyzes the desires and behavioral intentions of tourists within the scope of perception of COVID-19 and nonpharmaceutical intervention during the COVID-19 pandemic.Design/methodology/approachThe population of the research consists of people on a touristic trip in Turkey. Because of the pandemic, questionnaire data was collected online between 25 April and 15 May 2020. The research was carried out with 712 questionnaire forms. The data obtained were analyzed by structural equation modeling in the SM-PLS statistics program.FindingsPerception of COVID-19 significantly and positively affects NPI and negatively and significantly affects desire. Perception of COVID-19 and NPI do not have a significant positive/negative effect on behavioral intention. Finally, desire has a significantly positive effect on behavioral intention.Research limitations/implicationsSince the research has limitations in terms of time, cost, accessibility and control difficulties, the entire population could not be reached. The study was carried out with only 712 tourists traveling in Turkey.Practical implicationsThe obtained results will impact, particularly the decisions taken in Turkey's tourism sector. Moreover, if tourism companies know the decisions of the consumers during the pandemic process, they can use the appropriate marketing techniques.Social implicationsThe result may give an idea about the decision-making process of the consumers on traveling during the pandemic. In this way, psychologically different research can be developed.Originality/valueThere has not been any study made in Turkey that investigated the context of the current research model. Therefore, this research is original.

Impact of board of directors on financial performance and the existence of risk management as an intervening variable

2021 ◽  
pp. 2150031
Author(s):  
Mediaty Mediaty
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Board Of Directors ◽  
Structural Equation ◽  
Chief Executive ◽  
Equation Modeling ◽  
Ceo Duality ◽  
The Board Of Directors ◽  
Negative Effect ◽  
Positive Effect

This study investigates the effect of the board of directors on financial performance, either directly or indirectly through the existence of risk management in Indonesia.This study presents empirical investigation of 31 nonfinancial Indonesia listed companies from 2010 to 2016. This study utilizes the Structural Equation Modeling (SEM) model. The results of the SEM model find that there is a significant positive effect of the existence of risk management and the tenure-Chief Executive Officer (CEO) on financial performance. However, CEO duality has a significant negative effect on financial performance. The results also find that the effect of CEO duality and board size are significant positive on financial performance through the existence of risk management. It is one of the first papers to investigate the effect of board of directors and financial performance, either directly or indirectly through the existence of risk management in Indonesia.

scholarly journals Determinan Intellectual Capital terhadap Profitabilitas di Bank Syariah: Pengujian Mediasi Kinerja Keuangan dan Kinerja Non Keuangan

2020 ◽  
Vol 11 (2) ◽  
pp. 151-165
Author(s):  
Siti Mardilia Farihah ◽  
Setiawan Setiawan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Commercial Banks ◽  
Sampling Method ◽  
Research Result ◽  
Significant Positive Effect ◽  
Analysis Method ◽  
Significant Negative Effect ◽  
Negative Effect ◽  
Positive Effect

The purpose of this study is to analyze the effect of intellectual capital on financial performance and non-financial performance of Islamic banking, and its impact on the profitability of the bank. The population is 13 Sharia Commercial Banks in Indonesia. With the purposive sampling method, a sample of five Islamic commercial banks was obtained. Data analysis method in this study uses SEM PLS. The first result shows that intellectual capital has a significant negative effect on financial performance, a significant positive effect on non-financial performance, and a positive but unsignificant effect on profitability. The next results stated that financial performance and non-financial performance had a significant negative effect on profitability. The third research result states that intellectual capital has a significant positive effect on profitability through financial performance, but a significant negative effect on profitability through non-financial performance.

scholarly journals Evaluating and Comparing Beta CAPM in 2 Listed Vietnam Banks for Bannking Sustainable Development During Period 2011-2020

2021 ◽  
Vol 11 (3) ◽  
pp. 2276-2288
Author(s):  
Pham Thi Hong Nhung ◽  
Dinh Tran Ngoc Huy ◽  
Vu Quynh Nam ◽  
Leng Thi Lan
Keyword(s):  
Risk Management ◽  
Financial Market ◽  
Commercial Banks ◽  
Market Risk ◽  
High Impact ◽  
Governmental Agencies ◽  
Management Processes ◽  
Study Results ◽  
Negative Effect ◽  
Positive Effect

Authors selected 2 big listed banks Vietcombank and Sacombank in order to calculate market risk and make comparison, in Vietnam financial market. There are both strengths and weaknesses in risk management processes in commercial banks in emerging markets such as Vietnam. Huy, D.T.N (2015) has done a research to state that risk management and corporate governance standards nee to be enhance in corporations. Study results tell us that CPI has negative effect and higher impact on beta of both banks (table 3), while Rf has high impact and positive effect on beta of the banks, we suggest relevant governmental agencies need to control CPI (not decrease much) and rates of T-bill (not increase much) in order to reduce market risk. Finally, we make recommendations on risk management.

Working Memory, Mental Prospection, Time Orientation, and Cognitive Insight

2013 ◽  
Vol 34 (3) ◽  
pp. 159-169 ◽  
Author(s):  
Sevtap Cinan ◽  
Aslı Doğan
Keyword(s):  
Working Memory ◽  
Structural Equation ◽  
Factor Model ◽  
Time Orientation ◽  
Equation Modeling ◽  
Cognitive Insight ◽  
Confirmatory Factor ◽  
Negative Effect ◽  
Positive Effect ◽  
Three Factor

This research is new in its attempt to take future time orientation, morningness orientation, and prospective memory as measures of mental prospection, and to examine a three-factor model that assumes working memory, mental prospection, and cognitive insight are independent but related higher-order cognitive constructs by using confirmatory factor analysis (CFA). The three-factor model produced a good fit to the data. An alternative one-factor model was tested and rejected. The results suggest that working memory and cognitive insight are distinguishable, related constructs, and that both are distinct from, but negatively associated with, mental prospection. In addition, structural equation modeling (SEM) showed that working memory had a strong positive effect on cognitive insight and a moderate negative effect on mental prospection.

Sign in / Sign up

Export Citation Format

Share Document