Abstract:
This research aims to analyze the effect of ownership
types & fundamental factors toward bank performance in
Indonesian case 1991-1997. The idea is derived from study of
Rokhim (2006); which stated that banks with higher related
lending will be more fragility. In that study, she identifies
several fundamental factors such as Cost of Fund; Size and Net
Open Position. Different with Rokhim (2006), we focus at the
effect of ownership type toward bank performance. We argue
that related lending could be caused by ownership type. As we
know in literate of agency theory, the more concentrated
ownership the higher related lending.
Three important findings of our research are as follow: 1)
Ownership Type and Fundamental Factors have significant
effect toward bank performance. It implies to support indirectly
study of Rokhim (2006). 2) From eight variables of ownership
type only foreign, Soeharto, Listed and Cross and three
variables of Fundamental Factors, only cost respectively have
a significant effect in level 5 % toward bank performance. 3)
Robustness test with GLS fixed effeci has consistent result with
OLS non data panel.
