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The Influence of Top Management Team (TMT) Characteristics Toward Indonesian Banks Financial Performance During The Digital Era (2014-2018)

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Listed:
  • Mojambo, Gabriel A.M.
  • Tulung, Joy Elly
  • Saerang, Regina Trivena

Abstract

Despite of the abundant opportunities in Indonesian bank industry, digital era began to challenge banks to fully embrace the use of technology (information) with the objective of prolong competitive advantage. An organization becomes a reflection of its top managers. In facing such challenges, Top Management Team (TMT) members initiative to overcome the current status quo, will be reflected to the company under their management. For this reason, an effective TMT structure is a mandatory during the digital era to digitalize banking firms. This research investigates the relationship between top management team characteristics and Indonesian banks financial performance during the digital era. For top management team characteristics, this research includes functional background, gender diversity, average age, level of education, IT Expertise, and experience in years. While to measure the performance of Indonesian banks financial performance the paper includes return on asset (ROA), capital adequacy ratio (CAR), and non-performing loan (NPL). The results show that gender diversity have positive significant influences on NPL, average age have positive significant influences on ROA, CAR, NPL, and IT expertise have positive significant influences on CAR.

Suggested Citation

  • Mojambo, Gabriel A.M. & Tulung, Joy Elly & Saerang, Regina Trivena, 2020. "The Influence of Top Management Team (TMT) Characteristics Toward Indonesian Banks Financial Performance During The Digital Era (2014-2018)," MPRA Paper 108783, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:108783
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    References listed on IDEAS

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    Cited by:

    1. Xiaoxu Zhang & Xinyu Du, 2023. "Industry and Regional Peer Effects in Corporate Digital Transformation: The Moderating Effects of TMT Characteristics," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    2. Cristina Nicolau & Eliza Nichifor & Daniel Munteanu & Oana Bărbulescu, 2022. "Decoding Business Potential for Digital Sustainable Entrepreneurship: What Romanian Entrepreneurs Think and Do for the Future," Sustainability, MDPI, vol. 14(20), pages 1-21, October.

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    More about this item

    Keywords

    Bank; Top Management Team; Financial Performance;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G3 - Financial Economics - - Corporate Finance and Governance

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