Email this article 
Hide
Show all
Bank Size, Risk and Market Discipline with A Deposit Insurance: Evidence of Banking in Indonesia
Abstract
The Indonesian banking system has implemented a deposit guarantee. Deposit guarantees are carried out in order to provide a sense of security for customers. Moral hazard tends to be higher in the banking industry This study aims to examine the relationship of bank characteristics with market discipline. Bank characteristics include: capital, bank risk, profitability, efficiency and bank size. The population in this study is banks in Indonesia. The sample selection uses a purposive sampling method. The number of samples of 30 banks with peroide 2009-2015. Data analysis techniques used multiple linear regression. The results showed the profitability and size of the bank affect market discipline. Where profitability and bank size have a positive effect on market discipline. This research has implications for the importance of banks in increasing bank assets, especially for private banks.
Keywords
Full Text:
PDFReferences
Abidin, Zaenal, dan Endri, (2009). Kinerja Efisiensi Teknis Bank Pembangunan Daerah: Pendekatan Data Envelopment Analysis (DEA). Jurnal Akuntansi dan Keuangan. 11 (1)
Ahmad, R.L., Febrian, E., Anwar, M., and Herwany, A., (2019). Market Discipline and Implicit Deposit Protection Empirical Study on the Regional Development Banks in Indonesia. Journal of Economics and Economic Education Research, Research Article: 2019 20 (2)
Astohar. (2009). Analisis Faktor yang Mempengaruhi Profitabilitas Perbankan Di Indonesia (Studi Pada Bank Domestik, Bank Campuran dan Bank Asing). Tesis. Universitas Diponegoro Semarang (unpublished).
Bank Indonesia. 2014. Statitik Ekonomi Keuangan Indonesia.
Barajas, A & Steiner, R. (2000). Depositor behavior and market discipline in Colombia. Working Paper. No.wp/00/214. International Monetary Fund. Washington DC
Bliss, Robert R. (2005). Market Discipline: Players, Processes, And Purposes In Market Discipline Accros Countries And Industries. Blackwell publishing
Bliss, Robert R., and Mark Flannery. (2002). Market Discipline In The Governance Of U.S. Bank Holding Companies: Monitoring Vs Influence. European Finance Review, 6 (3)
Birchler, Urs W. and Andrea M. Maechler. (2002). Is there Market Discipline in Swiss banks? In Research in Financial Services, Prompt Corrective Action in Banking: 10 Years Later. 14: 243-257.
Cook, D. & Spellman, L. (1994). Repudiation Risk and Restitution Costs: Toward Understanding Premiums on Insured Deposits. Journal of Money, Credit, and Banking, 26 (3): 439-459.
Ellis, D. & Flannery, M. (1992). Does the Debt Market Assess Large Banks’ Risk? Journal of Monetary Economics, 30 (3)
Goldberg, Lawrence G., and Sylvia C. Hudgins. (1996). Response of Uninsured Depositors to Impending S & L Failures: Evidence of Depositor Discipline. Quarterly Review of Economics and Finance 36: 311–325
Hadad, M.D., Agusman, A., Monroe, G.S., Gasbarro, D., Zumwalt, J.K., (2011). Market discipline, financial crisis and regulatory changes: Evidence from Indonesian banks. Journal of Banking and Finance 35
Haryanto, Sugeng. (2016a). Determinan Permodalan Bank Melalui Profitabilitas, Risiko, Ukuran Perusahaan, Efisiensi dan Struktur Modal. Jurnal Ekonomi dan Bisnis (JEB). 19 (1)
Haryanto, Sugeng. (2016b). Profitability Identification of National banking Through Credit, Capital, Capital Structure, Effeciency, and Risk Level. Jurnal Dinamika Manajemen (JDM). 7 (1)
Haryanto, Sugeng. (2015). Determinan Struktur Modal. Proceeding Strtegic Agility: Thrive in Turbulent Environment (Research and Practices). Jurusan manajemen FE Unnes. 7 Oktober 2015.
Haryanto, Sugeng. (2015). Determinan Capital Buffer: Kajian Empirik Industri Perbankan Nasional. Jurnal Ekonomi Modernisasi. 11 (2)
Haryanto, Sugeng. (2014). Identifikasi Ekspektasi Investor Melalui Kebijakan Struktur Modal, Profitabilitas, Ukuran Perusahaan dan CGPI. Jurnal Dinamika Manajemen JDM. 5 (2)
Hasan dan Tandelilin, Eduardus. (2012). Banking Market Dicipline in Indonesia an Empirical Test on Conventional and Islamic Banks. Journal of Indonesia Economy and Business. 27 (2)
Hasan. (2013). Meningkatkan Transparansi dan Disiplin pasar Perbankan Syariah Di Indonesia. Jurnal Economica. IV (1)
Ioannidou, V and Jan de Dreu, d.J., (2006). The Impact of Explicit Deposit Insurance on Market Discipline. DNB Working Paper No. 089/2006
Irfan and Nugroho, Anggoro Budi. (2015). Market Discipline: Empirical Survey on Indonesia Government Domestic Bank. World Journal of Social Sciences. 5 (3)
Jagtiani, J. & Lemieux, C. (2001). Markets Discipline Prior to Failure. Journal of Economics and Business 53 (2/3)
Jati, Dian Purnomo. dan Murni, Sri. (2012). Disiplin pasar, Krisis Perbankan dan Penjaminan Sipanan (Studi Kasus Perbankan Indonesia). Jurnal Performance. 16 (2)
Jatna, M., (2007). Pengujian Efektivitas Market Disipline (Disiplin pasar) Pada Bank Umum di Indonesia dengan Balanced Panel Data Estimation [Test of Market Discipline Effectiveness on Commercial Bank in Indonesia with Balanced Panel Data Estimation. Thesis of Master Program. Yogyakarta: Faculty of Economics and Business, Universitas Gadjah Mada
Karas, A., Pyle, W., and Schoors, K., (2019). Deposit Insurance, Market Discipline and Bank Risk. U.S.E. Research Institute Working Paper Series 19-02
Khorassani, J. (2000). An Empirical Study of Depositor Sensitivity to Bank Risk. Journal of Economics and Finance. 24(1), 15-27.
Lane, Timothy D. (1993). Market Discipline. Staff Papers - International Monetary Fund, Vol. 40 (1).
Martinez Peria, MS & Schmukler, SL. (2001). Do depositors Punish Banks for Bad Behavior? Market Discipline, Deposit Insurance, and Banking Crises. Journal of Finance. 56 (3)
Meyer, Laurence H. (1999). Market Discipline as a Complement to Bank Supervision and Regulation. Remarks Before the Conference on Reforming Bank Capital Standards. Council on Foreign Relations. New York. June 14.
Pangemanan, S., dan L. Mawikere. (2011). Pengaruh Ukuran Perusahaan dan Pertumbuhan Perusahaan terhadap Earning Per share pada Industri Tekstil di Bursa Efek Indonesia. Jurnal Riset Akuntansi dan Auditing Goodwill. 2 (1).
Park, S. & Peristiani, S. (1998). Market Discipline by Thrift Depositors. Journal of Money, Credit, and Banking, 30 (3)
Riandika, Aditya Febri dan Taswan. (2015). Pengujian Disiplin pasar Perbankan Berdasarkan Posisi CAR, LDR, ROA dan NPL. Prosiding Seminar Nasional Multi Disiplin Ilmu & Call For paper Unisbank.
Sari, Yulimel. (2013). Pengaruh Profitabilitas, Kecukupan Modal dan Likuiditas Terhadap Harga Saham (Perusahaan Perbankan yang Terdaftar di BEI). Jurnal Akuntansi. 1 (1)
Skully, Michael et.al,. (2012). Market Discipline And The Australian Deposit Guarantee: Banks Versus Mutuals
Sofyan, S. (2013). Keputusan Go Public dan Hubungannya dengan Bank-Bank Swasta di Indonesia. Jurnal Media Riset & Manajemen. 3 (1) April.
Stephanou, Constantinos. (2010). Rethinking Market Discipline in Banking Lessons from the Financial Crisis. The World Bank Policy Research Working Paper 5227
Taswan. (2013). Pengujian Empiris Disiplin Pasar Periode Penjaminan Simpanan Implisit dan Eksplisit Di Indonesia. Jurnal Keuangan dan Perbankan. 17 (2)
Taswan. (2011). Kepemilikan Bank, Kepatuhan Regulasi dan Disiplin Pasar : Kontrol Risiko Perbankan dan Moral Hazard Terkait Posisi Charter Value Pada Periode Penjaminan Simpanan Implisit dan Eksplisit. Ringkasan Disertasi Ujian Terbuka dan Promosi Doktor Fakultas Ekonomika dan Bisnis Universitas Gadjah Mada.
Taswan. (2011). Kebijakan Modal Minimum, Kepemilikan Tunggal dan Kebijakan Penyalahgunaan Posisi Dominan Dalam Persaingan Usaha Industri Perbankan. Jurnal Benefit. 15 (2)
Wheelock, DC dan Wilson, P. (1999). Technical Progress Inefdiciency and Productivity Change in U.S. Banking 1984-1993. Journal of Money, Credit and Banking 31.
Widyastuti, Ratna Sri dan Armanto, Boedi. (2013). Kompetisi Industri Perbankan Indonesia. Buletin Ekonomi Moneter dan Perbankan. April 2013.
Widyastuti, U., Febrian, E., Sutisna, and Fitrijanti, T. (2019). Factors Explaining the Market Discipline of Sharia Mutual Funds from a Behavioural Finance Perspective: A Theoretical Approach. International Journal of Economics and Business Administration, 7 (3): 198-212
Wuryani, Gantiah. (2014). Pengelolaan Dana dan Likuiditas Bank. Buletin Ekonomi Moneter dan Perbankan. Januari 2014
Yudistira, D., (2002). The Impact of Bank Capital Requirements in Indonesia. Working Paper, Loughborough University.
DOI: https://doi.org/10.26905/afr.v2i2.3717
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
AFRE (Accounting and Financial Review) Postgraduate - University of Merdeka Malang Postgraduate Building, Terusan Dieng Street 62-64 | Other Link | Follow Us | |||||
| Site Home Journal Unmer Malang Postgraduate LPPM Library Repository |
|
AFRE (Accounting and Financial Review) |
