Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.037
F. Wurjaningrum, B. Hartami
— The objective of this study was to examine the influence of entrepreneurial orientation and operations strategy towards business performance through intermediaries which market orientation as an intervening variable or not. This study used a quantitative approach which focused on proving the hypothesis and generating some conclusions. The sample required thirty owners of the SMEs of pottery / ceramics in Kasongan Yogyakarta from the existing population with a minimum provision have been in operation for three years. The result was to provide evidence about the hypothesis that the entrepreneurial orientation and operations strategy significantly influenced business performance. The direct effect of the two independent variables of business performance was greater than if there was market orientation as the intervening variable. The suggestions that can be given to the owners and people involved in management decision-making on SME is to improve their entrepreneurial orientation, because these variables have a significant direct impact on business performance. The entrepreneurship orientation can be enhanced through three components, namely: innovation, risk taking, and proactiveness.
{"title":"The Intervening Effect of Market Orientation on Entrepreneurial Orientation, Operations Strategy, and Business Performance","authors":"F. Wurjaningrum, B. Hartami","doi":"10.2991/aebmr.k.200131.037","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.037","url":null,"abstract":"— The objective of this study was to examine the influence of entrepreneurial orientation and operations strategy towards business performance through intermediaries which market orientation as an intervening variable or not. This study used a quantitative approach which focused on proving the hypothesis and generating some conclusions. The sample required thirty owners of the SMEs of pottery / ceramics in Kasongan Yogyakarta from the existing population with a minimum provision have been in operation for three years. The result was to provide evidence about the hypothesis that the entrepreneurial orientation and operations strategy significantly influenced business performance. The direct effect of the two independent variables of business performance was greater than if there was market orientation as the intervening variable. The suggestions that can be given to the owners and people involved in management decision-making on SME is to improve their entrepreneurial orientation, because these variables have a significant direct impact on business performance. The entrepreneurship orientation can be enhanced through three components, namely: innovation, risk taking, and proactiveness.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131110612","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.010
H. Hendrayati, P. Pamungkas
— Social media users in Indonesia are increasing by the speed of internet in Indonesia. Business stakeholders use this as one of the things covered. Opportunities to get potential target become one of the reasons of appear social media advertising concepts. As a new alternative to media promotion, social media needs to be assessed through theoretical computations. The features and systems needed in social media need to be supported by an understanding of the theories. Therefore it is necessary to do a theoretical study that can analyze the phenomenon of social media advertising in. This is important given the enormous opportunities on social media as an alternative to marketer innovation. One form of social media that develops is viral marketing and e-WOM. Where there are two concepts in viral and e-WOM that are divided into two which are negative viral and positive viral, in accordance with the factors inflicted against the company or product. With the understanding of the theory then the function of social media can be utilized by the company as one of the promotional media. For consumers, it acts as a source before making a decision. Thus, it is expected that the optimization of the use of social media as a media campaign to be more developed.
{"title":"Viral Marketing and E-Word of Mouth Communication in Social Media Marketing","authors":"H. Hendrayati, P. Pamungkas","doi":"10.2991/aebmr.k.200131.010","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.010","url":null,"abstract":"— Social media users in Indonesia are increasing by the speed of internet in Indonesia. Business stakeholders use this as one of the things covered. Opportunities to get potential target become one of the reasons of appear social media advertising concepts. As a new alternative to media promotion, social media needs to be assessed through theoretical computations. The features and systems needed in social media need to be supported by an understanding of the theories. Therefore it is necessary to do a theoretical study that can analyze the phenomenon of social media advertising in. This is important given the enormous opportunities on social media as an alternative to marketer innovation. One form of social media that develops is viral marketing and e-WOM. Where there are two concepts in viral and e-WOM that are divided into two which are negative viral and positive viral, in accordance with the factors inflicted against the company or product. With the understanding of the theory then the function of social media can be utilized by the company as one of the promotional media. For consumers, it acts as a source before making a decision. Thus, it is expected that the optimization of the use of social media as a media campaign to be more developed.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121730645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.051
A. Sulaeman, E. T. Sule, H. Hilmiana, M. Cahyandito
— The soybean-based industry in West Java had proven as business that can survive in the long term with highly increasing demand. But, at present the number of business unit is declining and entrepreneurs are constrained by internal and external factors that will ultimately threaten their business sustainability. To solve these problems, the role of entrepreneurs as the main control holder with transformational leadership is highly needed. This study aims to determine the effect of transformational leadership on business sustainability. Using a theory of, this research was conducted with survey of CFA to confirm a questionnaire in-strument to 100 entrepreneurs of SMEs based on West Java soybean. The data obtained were processed by Structural Equation Modeling analysis. The result of research reveals that there is a significant influence of transformational leadership toward business sustainability. Government regulation and stakeholder were mod-erating variables of transformational leadership influence on business sustainability of SMEs. It is expected, that this research will contribute to the development of SME leadership, regulatory support and stakeholders.
{"title":"Entrepreneur Transformational Leadership for SME’s Business Sustainability","authors":"A. Sulaeman, E. T. Sule, H. Hilmiana, M. Cahyandito","doi":"10.2991/aebmr.k.200131.051","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.051","url":null,"abstract":"— The soybean-based industry in West Java had proven as business that can survive in the long term with highly increasing demand. But, at present the number of business unit is declining and entrepreneurs are constrained by internal and external factors that will ultimately threaten their business sustainability. To solve these problems, the role of entrepreneurs as the main control holder with transformational leadership is highly needed. This study aims to determine the effect of transformational leadership on business sustainability. Using a theory of, this research was conducted with survey of CFA to confirm a questionnaire in-strument to 100 entrepreneurs of SMEs based on West Java soybean. The data obtained were processed by Structural Equation Modeling analysis. The result of research reveals that there is a significant influence of transformational leadership toward business sustainability. Government regulation and stakeholder were mod-erating variables of transformational leadership influence on business sustainability of SMEs. It is expected, that this research will contribute to the development of SME leadership, regulatory support and stakeholders.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115773839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.028
A.A.G.S. Utam, Y. Setyowati
: This study aims to design a new digital commerce system by involving UMKM through e-commerce in perspective of accounting information system. The point of view of accounting information systems through e-commerce is growing rapidly and provides many new challenges. One of the challenges is the presence of web 2.0 generation that involves social media. These challenges lead to the emergence of the term social commerce which means that trading can be done through social media. On the other hand, electronic commerce or e-commerce presents a shorter trading system but less improves the relationship between sellers and buyers. The presence of s-commerce in value will be a good trading method for producers and consumers, so it can be a threat to the sustainability of e-commerce. Turning the threat into an opportunity then this research intends to design a collaboration system between e-commerce and s-commerce, which can be applied to the site banyuwangimall.com. it is expected that the results of this study will contribute to expedite transactions and increase sales on the site banyuwangimall.com in which is the perpetrators of SMEs in all Banyuwangi district.
{"title":"Collaboration System and Digital Business Efficiency in the Accounting Information System Perspective (Case Study Banyuwangimall.com)","authors":"A.A.G.S. Utam, Y. Setyowati","doi":"10.2991/aebmr.k.200131.028","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.028","url":null,"abstract":": This study aims to design a new digital commerce system by involving UMKM through e-commerce in perspective of accounting information system. The point of view of accounting information systems through e-commerce is growing rapidly and provides many new challenges. One of the challenges is the presence of web 2.0 generation that involves social media. These challenges lead to the emergence of the term social commerce which means that trading can be done through social media. On the other hand, electronic commerce or e-commerce presents a shorter trading system but less improves the relationship between sellers and buyers. The presence of s-commerce in value will be a good trading method for producers and consumers, so it can be a threat to the sustainability of e-commerce. Turning the threat into an opportunity then this research intends to design a collaboration system between e-commerce and s-commerce, which can be applied to the site banyuwangimall.com. it is expected that the results of this study will contribute to expedite transactions and increase sales on the site banyuwangimall.com in which is the perpetrators of SMEs in all Banyuwangi district.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127305193","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.047
Citra Indah Merina, A. K. Jaya, Y. Widianingsih, Bina Darma, Palembang
Environmental disclosure is the disclosure of information relating to the environment in the company's annual report. This disclosure aim is as a medium among companies, communities and investors that can be used as economic, social and political decision making. Industry type, company size, profitability, liquidity, environmental management systems, taxes, market share, and media coverage were considered to have influences on environmental disclosure. The study used quantitative analysis techniques with multivariate regression. The object of this research was the mining sector. The results showed that media coverage had a positive effect on environmental disclosure. This is because media coverage is a key communication function and is very important for management in CSR disclosure. In fact, communicating CSR through the media will enhance the company's reputation in the eyes of the public. The results of this study also indicated that environmental disclosure by companies in Indonesia was still relatively low. Therefore, companies need to increase their environmental disclosure in the annual report or sustainability report. Environmental disclosure is important for the company because it ensures transparency and accountability for the performance and long-term sustainability of the company. Keywords—Environmental Disclosure; Industry Type; Company Size; Financial Performance; Environmental Management System; Political Cost; Media Coverage
{"title":"Determinants of Environmental Disclosure in Indonesia","authors":"Citra Indah Merina, A. K. Jaya, Y. Widianingsih, Bina Darma, Palembang","doi":"10.2991/aebmr.k.200131.047","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.047","url":null,"abstract":"Environmental disclosure is the disclosure of information relating to the environment in the company's annual report. This disclosure aim is as a medium among companies, communities and investors that can be used as economic, social and political decision making. Industry type, company size, profitability, liquidity, environmental management systems, taxes, market share, and media coverage were considered to have influences on environmental disclosure. The study used quantitative analysis techniques with multivariate regression. The object of this research was the mining sector. The results showed that media coverage had a positive effect on environmental disclosure. This is because media coverage is a key communication function and is very important for management in CSR disclosure. In fact, communicating CSR through the media will enhance the company's reputation in the eyes of the public. The results of this study also indicated that environmental disclosure by companies in Indonesia was still relatively low. Therefore, companies need to increase their environmental disclosure in the annual report or sustainability report. Environmental disclosure is important for the company because it ensures transparency and accountability for the performance and long-term sustainability of the company. Keywords—Environmental Disclosure; Industry Type; Company Size; Financial Performance; Environmental Management System; Political Cost; Media Coverage","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116489416","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.045
Agus Pradita, Fitriya Fauzi
— This study aims to analyze the effect of corporate governance on firm performance in the Property, Real Estate, and Building Construction sectors in the Indonesia Stock Exchange in the 2015-2018 period. The research variables used were commissioners, independent commissioners, directors, women directors, independent directors, audit committees, nomination committees, remuneration committees and Return On Assets (ROA) and Return On Equity (ROE). The research sample was taken using the purposive sampling method using 21 companies with quarterly financial statements so that there were 336 observations. The method used is Ordinary Least Square (OLS) with the backward method. The results showed that only female directors who influenced company performance were measured using ROA and ROE, where the remuneration committee only affected ROA. It can be concluded that, in addition to provide diversity in women's directors for decision making, they also have a high degree of caution for risk.
{"title":"The Impact of Corporate Governance on Firm Performance: A Case Study of Property, Real Estate and Building Construction’s Listed Firm in the Indonesian Stock Exchange","authors":"Agus Pradita, Fitriya Fauzi","doi":"10.2991/aebmr.k.200131.045","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.045","url":null,"abstract":"— This study aims to analyze the effect of corporate governance on firm performance in the Property, Real Estate, and Building Construction sectors in the Indonesia Stock Exchange in the 2015-2018 period. The research variables used were commissioners, independent commissioners, directors, women directors, independent directors, audit committees, nomination committees, remuneration committees and Return On Assets (ROA) and Return On Equity (ROE). The research sample was taken using the purposive sampling method using 21 companies with quarterly financial statements so that there were 336 observations. The method used is Ordinary Least Square (OLS) with the backward method. The results showed that only female directors who influenced company performance were measured using ROA and ROE, where the remuneration committee only affected ROA. It can be concluded that, in addition to provide diversity in women's directors for decision making, they also have a high degree of caution for risk.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"99 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125182633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.017
M. Gunarto, R. Hurriyati
— The political changes in Indonesia that the community has many options and can provide voice or their right to vote in a political party or candidate, so that the voters have high bargaining power in the Regional Head Election. In an attempt to win the election takes no small cost, although the cost to the campaign cannot guarantee the election of a candidate. This study aimed to analyze the effect of integrated marketing communications (IMC) on the behavior and decisions of voters vote for candidates in political campaigns in the local elections in Indonesia. The results showed that the IMC factors can influence positively and could also negatively affect voter behavior and decision-elect. For that candidate or political party should be able to understand the segments of voters to be able to use the factors IMC effectively and efficiently, so as not to negatively affect the candidate.
{"title":"Integrated Marketing Communication on Voter Behavior in Political Campaign: A Study of Regional Head Election in Indonesia","authors":"M. Gunarto, R. Hurriyati","doi":"10.2991/aebmr.k.200131.017","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.017","url":null,"abstract":"— The political changes in Indonesia that the community has many options and can provide voice or their right to vote in a political party or candidate, so that the voters have high bargaining power in the Regional Head Election. In an attempt to win the election takes no small cost, although the cost to the campaign cannot guarantee the election of a candidate. This study aimed to analyze the effect of integrated marketing communications (IMC) on the behavior and decisions of voters vote for candidates in political campaigns in the local elections in Indonesia. The results showed that the IMC factors can influence positively and could also negatively affect voter behavior and decision-elect. For that candidate or political party should be able to understand the segments of voters to be able to use the factors IMC effectively and efficiently, so as not to negatively affect the candidate.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128819266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.060
Sunda Ariana, D. Mellita, A. K. Jaya
{"title":"The Effects of Leadership, Motivation, and Organizational Culture Toward Employees and Lecturers’ Performance in the University of Bina Darma Palembang","authors":"Sunda Ariana, D. Mellita, A. K. Jaya","doi":"10.2991/aebmr.k.200131.060","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.060","url":null,"abstract":"","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117346304","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.036
O.V.B. Nainggolan
— A feasibility analysis of Small Medium Enterprises (SME) of Shoes and Slippers in Bogor was held to get the depicture of the magnitude of investment and the costs spend for building the effort that gained by SME of Shoes and Slippers Entrepreneurs. The feasibility analysis including financial feasibility that committed to the SME business of shoes and Slippers that already exist was done to get the depicture of the magnitude that incurred and compared to the benefits that have been obtained and the description of cost benefit in the future by using SWOT. SWOT was used to answer the purpose of increasing the business of shoes and slippers in Pasir Eurih, Bogor. Based on the results, financial analysis was expected to be a reference of a SME of Shoes and Slippers in Bogor. The purpose of this study was to determine the feasibility of the SME of Shoes and Slippers in Bogor, also to determine the strategy pursued to develop the business to improve its competitiveness. The result of this research said that this was a proper business.
{"title":"Feasibility Analysis of Small and Medium Enterprises of Shoes and Slippers in Bogor","authors":"O.V.B. Nainggolan","doi":"10.2991/aebmr.k.200131.036","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.036","url":null,"abstract":"— A feasibility analysis of Small Medium Enterprises (SME) of Shoes and Slippers in Bogor was held to get the depicture of the magnitude of investment and the costs spend for building the effort that gained by SME of Shoes and Slippers Entrepreneurs. The feasibility analysis including financial feasibility that committed to the SME business of shoes and Slippers that already exist was done to get the depicture of the magnitude that incurred and compared to the benefits that have been obtained and the description of cost benefit in the future by using SWOT. SWOT was used to answer the purpose of increasing the business of shoes and slippers in Pasir Eurih, Bogor. Based on the results, financial analysis was expected to be a reference of a SME of Shoes and Slippers in Bogor. The purpose of this study was to determine the feasibility of the SME of Shoes and Slippers in Bogor, also to determine the strategy pursued to develop the business to improve its competitiveness. The result of this research said that this was a proper business.","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122666561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-02-07DOI: 10.2991/aebmr.k.200131.023
K. Haryakusuma
finance the external process because Indonesia is using banking system [3]. The company debt will possibly make them facing financial distress. In other words, real factors are fragile against the performance of the banking industry. The high dependence of Indonesia citizens towards banking services in Indonesia is reaching 77.9%. Compared to the other financial institutions, rural banks is 1.3%, Insurance Company is 10.8%, Pension Fund is 2.8%, Corporate Financing is 6.8% and the other non-bank institutions is (0.9%) [4]. Based on the fact, people in Indonesia still prefer to banking sector rather than the other capital market activity. Accordingly, the banking industry is required having good corporate governance to keep the credibility that supports to economic stability. In response to the trustworthiness from society in Indonesia, 80% 90% fund that bank has compiled are from third party fund. The source of bank funding is from third party fund obtained through banking products such as from saving deposit, demand deposit and time deposit. In 2013, the percentage amount of third party fund is 89.62%, dominated by demand deposit and time deposit [6]. The higher reliance from banking customers on third party fund proportion would increase the risks for bank management to carry out the social fund. To keep the society trustworthiness, a prudent principle must be implemented in the banking industry because it relates to the business sustainability. The banking industry in Indonesia has grown significantly, characterized by a number of banks and banking offices. The growing industry in banking sectors in Indonesia was an impact of Package of Bank Indonesia Deregulation on October 27, 1988 which is known as Pakto 88 [7]. The aims of the reforms were to inject a greater level of competition into banking sector and to increase credit availability throughout the country [8]. Pakto 88 had triggered the banking liberalization in Indonesia. Banking liberalization eased the restriction of bank establishment, consequently a year after this term applied, the number of banks and offices were growing significantly. The high level of rapid competition in banking industry would lead the banks to take an excessive risk because of the difficulty to predict the phenomenon in a rapid competition [9]. Bank is a financial institution that manages money to be the main object of its operations. Because of that, bank has Abstract—Banks have important role on the economy of Indonesia. With a fully regulated principle, Banking Sectors in Indonesia concern to keep in a good performance according to Bank Indonesia Regulation No. 13 / 1 / PBI / 2011 which emphasize on risk-based approach. Therefore, this paper aims to examine the factors affecting commercial banks business risk listed on Indonesia Stock Exchange. Those factors consist of risk profile (credit risk, liquidity risk, and interest rate risk), good corporate governance, earnings, and capital. The samples used in th
{"title":"Determinants of Bank Business Risk According to Risk Based Approach","authors":"K. Haryakusuma","doi":"10.2991/aebmr.k.200131.023","DOIUrl":"https://doi.org/10.2991/aebmr.k.200131.023","url":null,"abstract":"finance the external process because Indonesia is using banking system [3]. The company debt will possibly make them facing financial distress. In other words, real factors are fragile against the performance of the banking industry. The high dependence of Indonesia citizens towards banking services in Indonesia is reaching 77.9%. Compared to the other financial institutions, rural banks is 1.3%, Insurance Company is 10.8%, Pension Fund is 2.8%, Corporate Financing is 6.8% and the other non-bank institutions is (0.9%) [4]. Based on the fact, people in Indonesia still prefer to banking sector rather than the other capital market activity. Accordingly, the banking industry is required having good corporate governance to keep the credibility that supports to economic stability. In response to the trustworthiness from society in Indonesia, 80% 90% fund that bank has compiled are from third party fund. The source of bank funding is from third party fund obtained through banking products such as from saving deposit, demand deposit and time deposit. In 2013, the percentage amount of third party fund is 89.62%, dominated by demand deposit and time deposit [6]. The higher reliance from banking customers on third party fund proportion would increase the risks for bank management to carry out the social fund. To keep the society trustworthiness, a prudent principle must be implemented in the banking industry because it relates to the business sustainability. The banking industry in Indonesia has grown significantly, characterized by a number of banks and banking offices. The growing industry in banking sectors in Indonesia was an impact of Package of Bank Indonesia Deregulation on October 27, 1988 which is known as Pakto 88 [7]. The aims of the reforms were to inject a greater level of competition into banking sector and to increase credit availability throughout the country [8]. Pakto 88 had triggered the banking liberalization in Indonesia. Banking liberalization eased the restriction of bank establishment, consequently a year after this term applied, the number of banks and offices were growing significantly. The high level of rapid competition in banking industry would lead the banks to take an excessive risk because of the difficulty to predict the phenomenon in a rapid competition [9]. Bank is a financial institution that manages money to be the main object of its operations. Because of that, bank has Abstract—Banks have important role on the economy of Indonesia. With a fully regulated principle, Banking Sectors in Indonesia concern to keep in a good performance according to Bank Indonesia Regulation No. 13 / 1 / PBI / 2011 which emphasize on risk-based approach. Therefore, this paper aims to examine the factors affecting commercial banks business risk listed on Indonesia Stock Exchange. Those factors consist of risk profile (credit risk, liquidity risk, and interest rate risk), good corporate governance, earnings, and capital. The samples used in th","PeriodicalId":365232,"journal":{"name":"Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128228065","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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