IDEAS home Printed from https://ideas.repec.org/a/ids/ijmefi/v10y2017i3-4p270-280.html
   My bibliography  Save this article

The effect of corporate governance's application on banks' performance: empirical study of banks listed on the Indonesian Stock Exchange

Author

Listed:
  • Irma
  • Olivia Idrus

Abstract

This study aimed to examine the effect of corporate governance indicators, e.g., the board of directors, audit committee, and audit quality on bank's performance. This study used 30 banks listed on the Indonesia Stock Exchange (IDX) in the year of 2009-2010 as samples. The results reveal that the board of directors as one of the corporate governance indicators has a significantly positive correlation to banks' performance. As for the audit committee indicator, the result reveals a positive but insignificant effect on banks' performance. Meanwhile, a corporate governance indicator of audit quality has a significant positive relationship to the performance of the bank. This is consistent with the previous studies. It is concluded that the higher or better functioning the board of directors, audit committee and audit quality in the bank, the better the performance of the bank.

Suggested Citation

  • Irma & Olivia Idrus, 2017. "The effect of corporate governance's application on banks' performance: empirical study of banks listed on the Indonesian Stock Exchange," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 10(3/4), pages 270-280.
    • Handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:270-280
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=87477
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmefi:v:10:y:2017:i:3/4:p:270-280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=218 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.