COULD INDEPENDENT BOARD, BOARD MEETING, AUDIT COMMITTEE, AND RISK COMMITTEE IMPROVE THE ASSET QUALITY AND OPERATIONAL PERFORMANCE? A STUDY OF LISTED BANKS IN INDONESIA

Yıl 2017, Cilt: 4 Sayı: 3, 247 - 254, 30.09.2017

Te-Kuang Chou Agung Dharmawan Buchdadi

https://doi.org/10.17261/Pressacademia.2017.702

Öz

Purpose - This study examines the impact of
independent board of directors, board meeting, audit committee, and risk
committee on bank practise in Indonesia.

Methodology
- Asset quality is measured by non-performing loans (NPL), and operational
performance is measured by operational expense ratio (BOPO). While, as
independent variables we used some good corporate governance variables
including independent board (IB), the annual board meeting (BM), the percentage
of annual board of director meeting attendance, the annual board-executive
meeting (BEM), the percentage of annual board-executive meeting attendance,
Audit Committee (AC), Audit Committee Meeting (ACM), the percentage of annual
audit committee meeting attendance, Risk Committee (RC), Risk Committee Meeting
(RCM), and the percentage of annual risk committee meeting attendance. The data
are listed banks in Indonesian Capital Market during 2013-2015 using unbalanced
panel data two stage least square (2SLS) regression.

Findings- The findings
reveal that independent board will improve the prudence principal of the bank.
While the board of directors meeting will enhance the operational performance
of the bank.In addition, the number of the audit committee will make better
operational performance, while the number of meeting will improve the
non-performing loan. 

Anahtar Kelimeler

Audit committee, independent board, risk committee, non-performing loan, operational expense ratio

Kaynakça

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