The Influence of Corporate Governance for the Indonesian Banking Industry in a Pandemic Period

Djanegara, Moermahadi Soerja and Sutarti, Sutarti and Dewo, Setio Anggoro The Influence of Corporate Governance for the Indonesian Banking Industry in a Pandemic Period. INTERNATIONAL JOURNAL OF FINANCE & BANKING STUDIES, 11 (3). pp. 62-71. ISSN 2147-4486 (Unpublished)

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Abstract

This study aims to objectively investigate the impact of the Covid-19 pandemic on bank performance in Indonesia and the effect of corporate governance on banks. The sample consisted of 42 banks with 648 observations on the Indonesia Stock Exchange during the 2017-2020 period. The data were observed using a panel data set, and the estimation method used was Generalized least square (GLS). The results showed that the Covid-19 pandemic had a negative effect on bank performance. The governance variable proxied by the effectiveness of governance has a positive effect on performance. On the contrary, the governance variable proxied by the number of directors and board of commissioners has a negative effect on performance, unlike those proxied by diversity. The hierarchical regression analysis shows that the effectiveness of governance as a moderating variable can reduce the negative impact of the pandemic on performance. Therefore, it is possible to minimize the negative impact of Covid-19 on bank performance through effective governance. This is due to the ability to navigate through unexpected situations, identify opportunities, and create new strategies for adapting to the uncertainties caused by the pandemic. Effective governance shows that the bank has implemented good corporate governance to improve bank performance, efficiency, and service to stakeholders. This study provides empirical evidence that explores the overall governance effectiveness variable that can affect the relationship between the Covid-19 variable and bank performance.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Admin Kesatuan
Date Deposited:	20 Mar 2023 08:17
Last Modified:	20 Mar 2023 08:17
URI:	http://repository.ibik.ac.id/id/eprint/1502

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