The effect of Lerner Index and income diversification on the general bank stability in Indonesia

The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple...

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Bibliographic Details
Published inBanks and bank systems Vol. 12; no. 4; pp. 56 - 64
Main Authors Syahyunan, Muda, Iskandar, Sakti Siregar, Hasan, Sadalia, Isfenti, Chandra, Gerry
Format Journal Article
LanguageEnglish
Published Sumy Business Perspectives Ltd 2017
LLC "CPC "Business Perspectives
Subjects
bank stability
Diversification
Indonesia Stock Exchange
market power
Nonperforming loans
revenue diversification
Indonesia
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Summary:The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple Linear Regression. It can be concluded simultaneously that market power and revenue diversification have significant effect on bank stability and, partially, market power has a positive and significant effect on a bank stability. Income diversification has a positive non-significant effect on bank stability.
ISSN:1816-7403
1991-7074
DOI:10.21511/bbs.12(4).2017.05