The role of board of commissioners and transparency in improving bank operational efficiency and profitability
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2014, Vol 17, Issue 1
Abstract
Good corporate governance is a critical aspect in banking industries because the largest part of the source of funds is from public. Two of the important aspects of good corporate governance are the role of the board of commissioners and transparency. This study aimed to assess the effect of the implementation of good governance, which is proxied by the role of the board of commissioners and transparency of financial and non-financial condition, toward the operational efficiency and profitability of the national commercial banks in Indonesia. This study uses data of thirty six banks for five years, from 2008 to 2012. Random effect panel data technique is used to analyze the data since this technique can increase the power of statistical analysis. The results shows that in terms of efficiency only board that functions well capable of improving the operational efficiency of the banks. As for profitability, both good board of commissioners and public transparency are capable of increasing the bank operational profitability in Indonesia
Authors and Affiliations
Lutfi Lutfi, Meliza Silvy, Iramani Iramani
Keywords
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- EP ID EP461901
- DOI 10.14414/jebav.v17i1.268
- Views 120
- Downloads 0
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