Vol. 20 No. 1 (2017), Articles
Vol. 20 No. 1 (2017)

Bank Risk Profile, Good Corporate Governance And Company Values in Banking Companies Go Public in Indonesia

Articles
DOI: 10.14414/jebav.v20i1.759
Published 10-08-2017
Susi Retna Cahyaningtyas
FEB Universitas Mataram
Elin Erlina Sasanti
FEB Universitas Mataram
Wahidatul Husnaini
FEB Universitas Mataram
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Keywords

risk profile
inherent risk approach
good corporate governance
firm value

How to Cite

Cahyaningtyas, S. R., Sasanti, E. E., & Husnaini, W. (2017). Bank Risk Profile, Good Corporate Governance And Company Values in Banking Companies Go Public in Indonesia. Journal of Economics, Business, and Accountancy Ventura, 20(1), 41-46. https://doi.org/10.14414/jebav.v20i1.759
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Abstract

The latest Bank Indonesia Regulation No.14/18/PBI/2012 requires bank to have minimum capital of 8%-14% depends on the risk profile of each bank. Therefore, the main objective of this research is to assess whether the total of inherent risk profile of each bank meets the terms of this regulation. In addition, this study aims to examine the impact of inherent risk profile and GCG on the banking company value. The sample in this study is determined by purposive sampling method and resulted in 24 banks or 72 observations during 2011-2013. The results showed that 23 banks had low risk and low to moderate risk, and only one bank had moderate risk. The results also showed that inherent risk profile rating is equivalent to capital adequacy. In other words, inherent risk profile of these banks have complied with Bank Indonesia Regulation No.14/18/PBI/2012. Furthermore, this study indicated that GCG has significant and positive influence on the company value, while the inherent risk has no influence on the company value. Overall, this study suggest that go public banks in Indonesia are one of good alternative means of investment for its soundness as reflected by the fulfillment of minimum capital ratio required by the regulator.

References

Bank Indonesia. 2008. Surat Edaran Bank Indonesia Nomor 9/12/DPNP Tanggal 30 Mei 2008 Tentang Pelaksanaan Good Corporate Go-vernance bagi Bank Umum.

Bank Indonesia. 2011. Peraturan Bank Indonesia Nomor 13/ 1 /PBI/2011 Tentang Penilaian Tingkat Kesehatan Bank Umum

_____________. 2012. Peraturan Bank Indonesia Nomor 14/ 18 /PBI/2012 Tentang Kewajiban Penyediaan Modal Minimum Bank Umum

¬_____________. Surat Edaran Bank Indonesia No-mor 15/15/DPNP tahun 2013. Tentang Pe-laksanaan Good Corporate Governance bagi Bank Umum

Bruno, V.G., and Claessens, S. 2004. “Corporate Governance and Regulation:Can There Be Too Much th of a Good Thing?†The 6 Annual Darden Conference on Emerging Markets