The effect of characteristics and overlap membership of risk oversight committee on banking credit risk in Indonesia

Utami Ratnasari, Ancella A. Hermawan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This research aims to provide empirical evidence regarding the effects of characteristics and overlap membership of Risk Oversight Committee on Banking credit risk in Indonesia. There's still limited research examining risk oversight committee in Indonesia. Further, the overlap member between committee is very common to be found in Indonesia banking industry. Characteristics of each committees are measured by activities, size, and expertise & competence based on Hermawan (2009) and Indonesia Financial Service Authority (FSA) regulation. Samples are consisted of banks listed in Indonesia Stock Exchange (IDX) during 2013-2017. The result from this research concludes that expertise and competence of risk oversight committee has negative effect on bank credit risk. This research also provides empirical evidence that overlap membership of risk oversight on audit committee has positive effect on bank credit risk, thus diluted the to the committee's focus on monitoring bank credit risk. Further, the regulation of corporate governance in Indonesia can be improved through this research.

Original languageEnglish
Title of host publicationProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020
Subtitle of host publicationSustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages7366-7378
Number of pages13
ISBN (Electronic)9780999855119
Publication statusPublished - 2018
Event32nd International Business Information Management Association Conference, IBIMA 2018 - Seville, Spain
Duration: 15 Nov 201816 Nov 2018

Publication series

NameProceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018 - Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth

Conference

Conference32nd International Business Information Management Association Conference, IBIMA 2018
Country/TerritorySpain
CitySeville
Period15/11/1816/11/18

Keywords

  • Corporate Governance
  • Credit Risk
  • Risk Oversight Committee

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