The effects of ownership change on bank performance and risk exposure: Evidence from indonesia

Mohamed Shaban and Gregory James ()

Journal of Banking & Finance, 2018, vol. 88, issue C, 483-497

Abstract: This study investigates the effects of ownership change on the performance and exposure to risk of 60 Indonesian commercial banks over the period 2005–2012. We find that state-owned banks tend to be less profitable and more exposed to risk than private and foreign banks. Domestic investors tend to select the best performers for acquisition. Domestic acquisition is generally associated with a decrease in the efficiency of the acquired banks. Non-regional foreign acquisition is associated with a reduction in risk exposure. Acquisition by regional foreign investors is associated with performance gains.

Keywords: Bank; Efficiency; Ownership; Governance; M&A; Foreign acquisition; Privatization; Indonesia (search for similar items in EconPapers)
JEL-codes: F36 G21 G28 G34 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S037842661730033X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:88:y:2018:i:c:p:483-497

DOI: 10.1016/j.jbankfin.2017.02.002

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().