Effect of Ownership Structure and Corporate Governance to Risk Management and Implications Ontario Banking Performance

Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 7

Abstract

The objectives of this research are: 1) to describe exogenous, endogenous and mediation variables, 2) to examine the effect of exogenous variables, endogenous variables and mediation variables. Secondary data resource used is the financial statements of Islamic banks listed on the Indonesia Stock Exchange 2010-2015. The population of research is a number of 11 Sharia Commercial Banks in Indonesia, sample selection by purposive sampling method obtained 8 Bank. The analysis technique used descriptive statistics and Partial Least Square (PLS) analysis. The result of PLS analysis shows that the percentage of public ownership contributes 100% to the structure of public ownership, and has an effect on to company performance especially on Return on Equity. Credit Risk is able to contribute to Risk Management by 90.8%, and affect the Company'sperformance, especially on Return on Equity. Corporate Governance on Measurement Management Efficiency is able to contribute 57.8% to Company Performance, especially on Return on Equity. The contribution of this research finding to the Indonesian economy is the achievement of sharia banking performance illustrates the strong emphasis on efforts to revive the real sectors in the collection and channeling of customer funds. The fundraising pattern with mudharabah and wadi'ah schemes shows that savings returns, customer deposits are derived from the development of customer funds in the real sector. The pattern of fund distribution in the murabahah, mudharabah, and musyarakah schemes is closely related to the real sectors.

Authors and Affiliations

Lis Lestari S, Grahita Chandrarin, Prihat Assih

Keywords

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  • EP ID EP412116
  • DOI 10.9790/487X-2007031121.
  • Views 72
  • Downloads 0

How To Cite

Lis Lestari S, Grahita Chandrarin, Prihat Assih (2018). Effect of Ownership Structure and Corporate Governance to Risk Management and Implications Ontario Banking Performance. IOSR journal of Business and Management, 20(7), 11-21. https://europub.co.uk/articles/-A-412116