Institusion
STIE Indonesia Banking School
Author
Kaparang, Vica Wilani Putri
Subject
HF Commerce
Datestamp
2022-09-27 14:48:55
Abstract :
Risk management should be the most important part of bank management, in line with the increase in total banking assets. The global market situation especially in the financial sector may expose banks to various types of risks that have implications for fluctuations in assets and liabilities, revenues and expenses. This study aims to compare the efficiency, profitability, and firm value in the period of observation before and after the implementation of risk management on the bank industry in Indonesia, especially publicly-held banks. Identification of disclosures on the reporting of the implementation of bank risk management based on risk profile analysis published in the 2005 annual report. The period of observation before the implementation of risk management is 2003-2004, and the observation period after the implementation of risk management is 2005-2006. Bank efficiency is measured using BOPO ratio, bank profitability is measured using ROE ratio, and firm value is measured using PBV ratio. The method used is paired sample dependent test.The results showed that there are no differences of efficiency and value of the company in the period of observation before and after the implementation of risk management, and there is difference in profitability in the observation period before and after the implementation of risk management.