The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach

Volume: 6 Number: 1 March 1, 2016
  • Sapto Jumono
  • Noer Azam Achsani
  • Dedi Budiman Hakim
  • Muhammad Fidaus
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
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The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach

Abstract

The aim of this research is to find out the speed of adjustment and impact of market concentration on rentability (Return on Equity). From 145 banks, there were 97 banks chosen in a period of 2001-2012 as sampling of research by using purposive sampling. This research uses data panel, therefore dynamics panel data regression is used in this research and using GMM Arellano Bonds as research tools. This research shows that speed of adjustment close to zero point which means the market condition is more competitive; and the variables which affect ROE are ROElag1, market concentration, bank size, non-performing loan, and overhead to revenue ratio meanwhile the other variables do not impact ROE

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Sapto Jumono This is me

Noer Azam Achsani This is me

Dedi Budiman Hakim This is me

Muhammad Fidaus This is me

Publication Date

March 1, 2016

Submission Date

March 1, 2016

Acceptance Date

-

Published in Issue

Year 2016 Volume: 6 Number: 1

IZ

https://izlik.org/JA55MA59SN

Cite

RIS / Bibtex
APA
Jumono, S., Achsani, N. A., Hakim, D. B., & Fidaus, M. (2016). The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach. International Journal of Economics and Financial Issues, 6(1), 207-213. https://izlik.org/JA55MA59SN
AMA
1.Jumono S, Achsani NA, Hakim DB, Fidaus M. The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach. IJEFI. 2016;6(1):207-213. https://izlik.org/JA55MA59SN
Chicago
Jumono, Sapto, Noer Azam Achsani, Dedi Budiman Hakim, and Muhammad Fidaus. 2016. “The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach”. International Journal of Economics and Financial Issues 6 (1): 207-13. https://izlik.org/JA55MA59SN.
EndNote
Jumono S, Achsani NA, Hakim DB, Fidaus M (March 1, 2016) The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach. International Journal of Economics and Financial Issues 6 1 207–213.
IEEE
[1]S. Jumono, N. A. Achsani, D. B. Hakim, and M. Fidaus, “The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach”, IJEFI, vol. 6, no. 1, pp. 207–213, Mar. 2016, [Online]. Available: https://izlik.org/JA55MA59SN
ISNAD
Jumono, Sapto - Achsani, Noer Azam - Hakim, Dedi Budiman - Fidaus, Muhammad. “The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach”. International Journal of Economics and Financial Issues 6/1 (March 1, 2016): 207-213. https://izlik.org/JA55MA59SN.
JAMA
1.Jumono S, Achsani NA, Hakim DB, Fidaus M. The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach. IJEFI. 2016;6:207–213.
MLA
Jumono, Sapto, et al. “The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach”. International Journal of Economics and Financial Issues, vol. 6, no. 1, Mar. 2016, pp. 207-13, https://izlik.org/JA55MA59SN.
Vancouver
1.Sapto Jumono, Noer Azam Achsani, Dedi Budiman Hakim, Muhammad Fidaus. The Effect of Loan Market Concentration on Banking Rentability: A Study of Indonesian Commercial Banking, Dynamics Panel Data Regression Approach. IJEFI [Internet]. 2016 Mar. 1;6(1):207-13. Available from: https://izlik.org/JA55MA59SN