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The Effect of Financial Performance and Corporate Governance to Stock Price in Non-Bank Financial Industry

Author

Listed:
  • Karamoy, Herman
  • Tulung, Joy Elly

Abstract

Indonesia's financial sector is highly dominated by the banking industry than the non-bank. It controlled almost 74% of Indonesia's financial assets in 2014. After post-crisis restructuration, the banking sector has become stronger, with a higher capital adequacy ratio and profitability. While, The Non-Bank Financial Industry is expected to solve the problems in the Indonesian economy, as well as becoming one of the long-term economic instruments. The purposed of this study is to test and analyse the effect of financial performance and the implementation of corporate governance on the Non-Bank Financial Industry Stock Prices on Indonesian Stock Exchange in 2012-1016. The research population includes the Non-Bank Financial Industry listed in IDX, as many as 37 companies. This study found the Probability, Managerial Ownership, Institutional Ownership and the composition of Independent Commissioner partially and simultaneously does not significantly influence the Stock Price of the Non-Bank Financial Industry.

Suggested Citation

  • Karamoy, Herman & Tulung, Joy Elly, 2019. "The Effect of Financial Performance and Corporate Governance to Stock Price in Non-Bank Financial Industry," MPRA Paper 128700, University Library of Munich, Germany, revised 24 Jan 2020.
    • Handle: RePEc:pra:mprapa:128700
    as

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    File URL: https://mpra.ub.uni-muenchen.de/128700/1/MPRA_paper_128700.pdf
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    References listed on IDEAS

    as
    1. Tulung, Joy Elly & Saerang, Ivonne Stanley & Pandia, Stevanus, 2018. "The Influence of Corporate Governance on The Intellectual Capital Disclosure: A Study on Indonesian Private Banks," MPRA Paper 118728, University Library of Munich, Germany, revised 29 Oct 2018.
    2. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    3. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    4. Rampini, Adriano A. & Viswanathan, S. & Vuillemey, Guillaume, 2019. "Risk Management in Financial Institutions," CEPR Discussion Papers 13787, Centre for Economic Policy Research.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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