Abstract:
Based on Good Corporate Governance implemented by go public company especially in banking industry which is one of the most affecting sectors in Indonesian economy, ownership concentration and banking operational performance are interrelated. The purpose of this research is to analyze and interpret the effect of ownership concentration to the banking operational performance in Indonesia using the financial data report such as Income Statement, Balance Sheet, and Stockholder Equity.
The conclusion of this research are the state-owned banks have significant effect of the ownership concentration to operational performance; and inversely compared to the private banks which have no significant effect of ownership concentration to the operational performance. This can be seen from the ROE (Return on Equity) of these banks. Therefore, It is recommended to the banks (state-owned and private banks) to enhance the operational performance because will gives significant effect in the long term as well. Moreover, the operational performance is one of a measure instrument for consumers prevalence (individual or corporation) in pointing of for their asset safety.
