Market Concentration Index and Performance: Evidence from Indonesian Banking Industry

Sapto Jumono, Abdurrahman and Chajar Matari Fath Mala
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Sapto Jumono: Department of Management and Business, UEU, Jakarta, Indonesia
Abdurrahman: Department of Management and Business, UEU, Jakarta, Indonesia,
Chajar Matari Fath Mala: Department of Management and Business, UEU, Jakarta, Indonesia.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 2, 249-258

Abstract: The aim of this research is to evaluate the loan market, deposit market, and performance based on basic earning power (BEP) and return on equity (ROE). This research also investigates the relationship between markets and performance. Structure-conduct-performance (SCP) theory is used as the grand theory. This research uses 97 samples from the publication of financial report during 2011-2014. The inferential analysis is conducted by generalized method of moment Arellano and Bond. The research result showed that concentration market index has a significant influence of BEP and ROE, meanwhile market share does not have a significant influence on BEP and ROE. According to SCP theory, this result shows that Indonesian banking industry is in the collusive condition and is not efficient yet

Keywords: Concentration Index; Market Share; Loan; Deposits; Basic Earning Power; Return on Equity (search for similar items in EconPapers)
JEL-codes: C23 G21 L11 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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