THE SUCCESS FACTORS OF FINANCIAL PERFORMANCE OF BANK PEMBANGUNAN DAERAH (BPD), INDONESIA BEFORE AND AFTER AUTONOMY
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2014-06-11
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Abstract
This study aims is to determine the success factors of financial performance of Bank pembangunan Daerah Indonesia before and after autonomy. The population for this study consists of 260 units analysis of financial statements from 26 banks (BPD) in Indonesia during 10 years. This study found the following results. First, the macroeconomic variable has no significant relationship with financial performance, both before and after the autonomy (-0.0407 and 0.1606). Second, the capital has significant relationship with market risk both before and after the autonomy (0.3141 and 0.3262), and capital has significant relationship with financial performance before the autonomy (0.4140) and no significant relationship with after the autonomy (0.0612). Third, the asset quality has no significant relationship with market risk (0.0511), but it was significant relationship with financial performance, prior the autonomy. Meanwhile, the period after the autonomy, the asset quality has significant relationship with market risk and financial performance (0.2995 and 0.1331). Fourth, the liquidity has significant relationship with market risk both before and after the autonomy (0.4330 and 0.2087), and the liquidity also has significant relationship with financial performance, both before and after the autonomy (0.2312 and 0.2362). Fifth, market risk has significant relationship with financial performance, both before and after the autonomy (0.3251 and 0.5389), and the sixth, also found that unlicensed interpretation kewangan after regional autonomy means to qualities of BPD after regional autonomy was also better than before autonomy. Furthermore, the results of this study explained that the capital played an important role on Bank Pembangunan Daerah financial performance in Indonesia both before and after the autonomy. Therefore, it is important to strengthen the bank's capital in order to further enhance its soundness.
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Macro Economics, Capital, Asset Quality, Liquidity, Market Risk, Financial Performance