The Influence of Top Management Team (TMT) Characteristics Toward Indonesian Banks Financial Performance During The Digital Era (2014-2018)

Gabriel A.M. Mojambo, Joy Tulung and Regina Trivena Saerang

MPRA Paper from University Library of Munich, Germany

Abstract: Despite of the abundant opportunities in Indonesian bank industry, digital era began to challenge banks to fully embrace the use of technology (information) with the objective of prolong competitive advantage. An organization becomes a reflection of its top managers. In facing such challenges, Top Management Team (TMT) members initiative to overcome the current status quo, will be reflected to the company under their management. For this reason, an effective TMT structure is a mandatory during the digital era to digitalize banking firms. This research investigates the relationship between top management team characteristics and Indonesian banks financial performance during the digital era. For top management team characteristics, this research includes functional background, gender diversity, average age, level of education, IT Expertise, and experience in years. While to measure the performance of Indonesian banks financial performance the paper includes return on asset (ROA), capital adequacy ratio (CAR), and non-performing loan (NPL). The results show that gender diversity have positive significant influences on NPL, average age have positive significant influences on ROA, CAR, NPL, and IT expertise have positive significant influences on CAR.

Keywords: Bank; Top Management Team; Financial Performance (search for similar items in EconPapers)
JEL-codes: G2 G21 G3 (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-cfn, nep-ict, nep-isf, nep-pay and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in JMBI UNSRAT 1.7(2020): pp. 1-25

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