TY - GEN
T1 - Principal-Agent or Patron-Client? The Unspoken Concord of Indonesia’s Two-Tier Corporate Governance
AU - Ikasari, Novita
AU - Umanto,
AU - Hartantiningsih, Ika Sri
N1 - Publisher Copyright:
© 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
PY - 2023
Y1 - 2023
N2 - Corporate governance (CG) in the banking sector is deemed as one of the most structured and regulated. When it applies to regional development banks, the regional dynamics contribute to the quality of corporate governance. Using Indonesia as a case in point, this paper aims at analyzing corporate governance practices based on dynamics amongst actors in regional development banks. Using agency and patron-client theory, the underlying dynamics amongst different actors representing the two-tier system applied by Indonesia are presented and elaborated. The study applies a qualitative approach. Data are collected using in-depth interviews with representatives from the board of directors and board of commissioners of selected regional development banks as well as regulatory agencies in Indonesia. This study proposes the application of the patron-client approach to understand the interactions amongst controlling shareholders, the board of commissioners, and the board of directors. In conclusion, a model of dynamic interactions amongst the actors is proposed based on two case studies constructed from a series of interviews to elaborate the dynamics.
AB - Corporate governance (CG) in the banking sector is deemed as one of the most structured and regulated. When it applies to regional development banks, the regional dynamics contribute to the quality of corporate governance. Using Indonesia as a case in point, this paper aims at analyzing corporate governance practices based on dynamics amongst actors in regional development banks. Using agency and patron-client theory, the underlying dynamics amongst different actors representing the two-tier system applied by Indonesia are presented and elaborated. The study applies a qualitative approach. Data are collected using in-depth interviews with representatives from the board of directors and board of commissioners of selected regional development banks as well as regulatory agencies in Indonesia. This study proposes the application of the patron-client approach to understand the interactions amongst controlling shareholders, the board of commissioners, and the board of directors. In conclusion, a model of dynamic interactions amongst the actors is proposed based on two case studies constructed from a series of interviews to elaborate the dynamics.
KW - Corporate governance
KW - Patron-client
KW - Regional development banks
UR - http://www.scopus.com/inward/record.url?scp=85135058140&partnerID=8YFLogxK
U2 - 10.1007/978-3-031-08084-5_33
DO - 10.1007/978-3-031-08084-5_33
M3 - Conference contribution
AN - SCOPUS:85135058140
SN - 9783031080838
T3 - Lecture Notes in Networks and Systems
SP - 453
EP - 465
BT - Sustainable Finance, Digitalization and the Role of Technology - Proceedings of The International Conference on Business and Technology, ICBT 2021
A2 - Alareeni, Bahaaeddin
A2 - Hamdan, Allam
PB - Springer Science and Business Media Deutschland GmbH
T2 - International Conference on Business and Technology, ICBT 2021
Y2 - 6 November 2021 through 7 November 2021
ER -