Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis

This paper takes into consideration the determinants of bank performance in Indonesian banking sector. It is pooled cross-sectional time series and dynamic panel data models. This research is about frameworks incorporating the traditional Structure-Conduct-Performance (SCP) and Relative Efficiency (...

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Main Authors: Zandi Pour Joopari, GholamReza, Sarita, Buyung, Shahabi, Alireza
Format: Proceeding Paper
Language:English
English
Published: 2012
Subjects:
Online Access:http://irep.iium.edu.my/24518/
http://irep.iium.edu.my/24518/1/DETERMINANTS_OF_PERFORMANCE_IN_INDONESIAN_BANKING.pdf
http://irep.iium.edu.my/24518/4/icef_izmir.pdf
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author Zandi Pour Joopari, GholamReza
Sarita, Buyung
Shahabi, Alireza
author_facet Zandi Pour Joopari, GholamReza
Sarita, Buyung
Shahabi, Alireza
author_sort Zandi Pour Joopari, GholamReza
building IIUM Repository
collection Online Access
description This paper takes into consideration the determinants of bank performance in Indonesian banking sector. It is pooled cross-sectional time series and dynamic panel data models. This research is about frameworks incorporating the traditional Structure-Conduct-Performance (SCP) and Relative Efficiency (RE) hypothesis. The estimation results show bank performance industry is competitive in a way that represents nearly a perfectly competitive market structure in Indonesian banking sector. However, no evidence turns up in the finding for the support of both the traditional SCP and RE paradigm. The negative relationship between loans to group businesses and bank performance, which is likely due to the high loans provided to group businesses, thus supporting the moral hazard hypothesis.
first_indexed 2025-11-14T15:15:48Z
format Proceeding Paper
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institution International Islamic University Malaysia
institution_category Local University
language English
English
last_indexed 2025-11-14T15:15:48Z
publishDate 2012
recordtype eprints
repository_type Digital Repository
spelling iium-245182012-12-20T23:35:29Z http://irep.iium.edu.my/24518/ Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis Zandi Pour Joopari, GholamReza Sarita, Buyung Shahabi, Alireza HG1501 Banking This paper takes into consideration the determinants of bank performance in Indonesian banking sector. It is pooled cross-sectional time series and dynamic panel data models. This research is about frameworks incorporating the traditional Structure-Conduct-Performance (SCP) and Relative Efficiency (RE) hypothesis. The estimation results show bank performance industry is competitive in a way that represents nearly a perfectly competitive market structure in Indonesian banking sector. However, no evidence turns up in the finding for the support of both the traditional SCP and RE paradigm. The negative relationship between loans to group businesses and bank performance, which is likely due to the high loans provided to group businesses, thus supporting the moral hazard hypothesis. 2012-04-27 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/24518/1/DETERMINANTS_OF_PERFORMANCE_IN_INDONESIAN_BANKING.pdf application/pdf en http://irep.iium.edu.my/24518/4/icef_izmir.pdf Zandi Pour Joopari, GholamReza and Sarita, Buyung and Shahabi, Alireza (2012) Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis. In: ICEF 2012, 27-28 April 2012., Izmir, Turkey.
spellingShingle HG1501 Banking
Zandi Pour Joopari, GholamReza
Sarita, Buyung
Shahabi, Alireza
Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis
title Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis
title_full Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis
title_fullStr Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis
title_full_unstemmed Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis
title_short Determinants of Performance in Indonesian Banking: A Cross-Sectional And Dynamic Panel Analysis
title_sort determinants of performance in indonesian banking: a cross-sectional and dynamic panel analysis
topic HG1501 Banking
url http://irep.iium.edu.my/24518/
http://irep.iium.edu.my/24518/1/DETERMINANTS_OF_PERFORMANCE_IN_INDONESIAN_BANKING.pdf
http://irep.iium.edu.my/24518/4/icef_izmir.pdf