Foreign Ownership and Financial Firms Performance: Empirical Evidence Indonesia Financial Services Industry  

Oleh:

Johan, Suwinto

Jenis: Article from Journal - ilmiah nasional - terakreditasi DIKTI
Dalam koleksi: Jurnal Manajemen Teknologi vol. 11 no. 3 (2012), page 239-249.
Topik: financial performance; foreign ownership; finance company; panel data; financial ratio
Fulltext: 401-1003-1-PB_Pas.pdf (538.02KB)

Isi artikel

The aim of the paper is to study the value created by foreign firms in Indonesia finance company industry over the period 2001-2011. We analysed the value creation of foreign firms by comparing the key financial performance to local shareholders. Foreign firms are the major players in banking industry and automotive industry with market share more than 90% oin both two wheeler and four wheeler. Meanwhile, the automotive manufacturers and dealers are the one who provide the products of financing for finance company. We analysed seven micro key financial variables (profitability, efficiency, growth, firm size, liquidity, solvency and asset quality). We use parametric panel data dummy regression. The empirical results show that finance companies owned by foreign firms are more efficient, lower in profitability, bigger in size, higher in growth capability, lower in liquidity and higher in solvency.

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