The Influence of Ownership Structure on the Financial Performance of Banks

This study aims to analyze the effect of ownership structure on the financial performance of banks in Indonesia. The variables considered include managerial, institutional, foreign, and public ownership. The study also examines bank size and credit risk as control variables, with financial performa...

Full description

Saved in:
Bibliographic Details
Main Authors: Sigit Pamungkas, Muchtar Hidayat, Muhammad Syarif, Farah Margaretha Leon, Henny S. Lestari
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2024-12-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://e-journal.uac.ac.id/index.php/iijse/article/view/6948
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849387950170701824
author Sigit Pamungkas
Muchtar Hidayat
Muhammad Syarif
Farah Margaretha Leon
Henny S. Lestari
author_facet Sigit Pamungkas
Muchtar Hidayat
Muhammad Syarif
Farah Margaretha Leon
Henny S. Lestari
author_sort Sigit Pamungkas
collection DOAJ
description This study aims to analyze the effect of ownership structure on the financial performance of banks in Indonesia. The variables considered include managerial, institutional, foreign, and public ownership. The study also examines bank size and credit risk as control variables, with financial performance measured by Net Interest Margin (NIM), Return on Assets (ROA), and Return on Equity (ROE). The method used is panel data regression, employing a purposive sampling technique on 43 banks listed on the Indonesia Stock Exchange during the 2019-2023 period. The study results indicate that managerial, institutional, and public ownership variables do not have a significant effect on financial performance, while foreign ownership has an impact on ROE. Additionally, bank size and credit risk are shown to affect both ROA and ROE. These findings suggest that factors beyond ownership structure play a more significant role in determining the financial performance of banks in Indonesia.
format Article
id doaj-art-da9b71a41ba54052bb5bcbfc1493a1da
institution Kabale University
issn 2621-606X
language English
publishDate 2024-12-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
record_format Article
series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-da9b71a41ba54052bb5bcbfc1493a1da2025-08-20T03:42:26ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2024-12-0173The Influence of Ownership Structure on the Financial Performance of BanksSigit Pamungkas0Muchtar Hidayat1Muhammad Syarif2Farah Margaretha Leon3Henny S. Lestari4Universitas Trisakti, Jakarta Barat, IndonesiaUniversitas Trisakti, Jakarta Barat, IndonesiaUniversitas Trisakti, Jakarta Barat, IndonesiaUniversitas Trisakti, Jakarta Barat, IndonesiaUniversitas Trisakti, Jakarta Barat, Indonesia This study aims to analyze the effect of ownership structure on the financial performance of banks in Indonesia. The variables considered include managerial, institutional, foreign, and public ownership. The study also examines bank size and credit risk as control variables, with financial performance measured by Net Interest Margin (NIM), Return on Assets (ROA), and Return on Equity (ROE). The method used is panel data regression, employing a purposive sampling technique on 43 banks listed on the Indonesia Stock Exchange during the 2019-2023 period. The study results indicate that managerial, institutional, and public ownership variables do not have a significant effect on financial performance, while foreign ownership has an impact on ROE. Additionally, bank size and credit risk are shown to affect both ROA and ROE. These findings suggest that factors beyond ownership structure play a more significant role in determining the financial performance of banks in Indonesia. https://e-journal.uac.ac.id/index.php/iijse/article/view/6948Ownership Structure, Financial Performance, Banking, Panel Data Regression, Indonesia Stock Exchange
spellingShingle Sigit Pamungkas
Muchtar Hidayat
Muhammad Syarif
Farah Margaretha Leon
Henny S. Lestari
The Influence of Ownership Structure on the Financial Performance of Banks
Indonesian Interdisciplinary Journal of Sharia Economics
Ownership Structure, Financial Performance, Banking, Panel Data Regression, Indonesia Stock Exchange
title The Influence of Ownership Structure on the Financial Performance of Banks
title_full The Influence of Ownership Structure on the Financial Performance of Banks
title_fullStr The Influence of Ownership Structure on the Financial Performance of Banks
title_full_unstemmed The Influence of Ownership Structure on the Financial Performance of Banks
title_short The Influence of Ownership Structure on the Financial Performance of Banks
title_sort influence of ownership structure on the financial performance of banks
topic Ownership Structure, Financial Performance, Banking, Panel Data Regression, Indonesia Stock Exchange
url https://e-journal.uac.ac.id/index.php/iijse/article/view/6948
work_keys_str_mv AT sigitpamungkas theinfluenceofownershipstructureonthefinancialperformanceofbanks
AT muchtarhidayat theinfluenceofownershipstructureonthefinancialperformanceofbanks
AT muhammadsyarif theinfluenceofownershipstructureonthefinancialperformanceofbanks
AT farahmargarethaleon theinfluenceofownershipstructureonthefinancialperformanceofbanks
AT hennyslestari theinfluenceofownershipstructureonthefinancialperformanceofbanks
AT sigitpamungkas influenceofownershipstructureonthefinancialperformanceofbanks
AT muchtarhidayat influenceofownershipstructureonthefinancialperformanceofbanks
AT muhammadsyarif influenceofownershipstructureonthefinancialperformanceofbanks
AT farahmargarethaleon influenceofownershipstructureonthefinancialperformanceofbanks
AT hennyslestari influenceofownershipstructureonthefinancialperformanceofbanks