Detail Cantuman

Abstract: This study examines the connection between governance, financial
performance, and financial difficulties of 27 conventional private banks
during
the pe3riod of 2015-2018. In order to meet the accuracy of the
model
in the regression analysis, the Lagrange Multiplier test was previously
performed so that the Fixed
Effects model was chosen. The relationship
of insider ownership with ROA
tends to be in the shape of inversed-U
and
the relationship between institutional ownership and ROA
is significantly
positive. The relationship between ROA
and financial difficulties is
significantly
negative. Older or established large scale banks tend to have
high
ROA.
This happens because the greater the assets, the healthier the
cash
flow of the bank, so that the potential for return of asset is quite high
and
financial difficulties tend to be low or avoidable.
Keywords: institutional ownership, insider ownership, governance, financial
difficulty