Contingency Factors, Risk Management, and Performance of Indonesian Banks
The purpose of this study is to examine the effect of enterprise risk management (ERM) and credit risk management (CMR) on Indonesian bank performance. This study also investigates the moderating role of bank contingency factors on those impacts. By exploring purposive sampling method, 24 Indonesian public listed Banks were selected as the sample of this study for four years observations.
This study found ERM and CRM positively influence on Indonesian bank performance. This study also reported that the influencing of ERM on Bank performance will be stronger for large bank and the bank which operate in higher environmental uncertainty, higher complexity, and lower independent board monitoring. In contrast this study provide an empirical evidence on strangtern CRM-bank performance relationship will be exist for small bank and the bank which operate in lower environmental uncertainty, lower complexity, and higher independent board monitoring.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MTI journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.