The Implementation of Corporate Governance Through Self-assessment in Increasing Liquidity of East Java Regional Development Bank
Abstract
This study will analyze the application of Corporate Governance (CG) in increasing liquidity. CG is measured from the self-assessment conducted by the East Java Development Bank. The implementation of corporate governance is based on SEOJK No. 32/SEOJK.04/2015, concerning the open corporate governance. The application of CG has eight principles. Liquidity is measured by Current Ratio. This study uses descriptive analysis. Data used financial statements and the implementation of CG in 2017. The results showed that the application of CG based on self-assessment has good criteria. The level of liquidity shows liquid results. This shows that a good implementation of CG will increase the level of liquidity.
Keywords: corporate governance, liquidity, current ratio, self-assessment
References
[1] Christopoulos, D. K., and Tsionas, E. G. (2001). Banking economic efficiency in the deregulation period: Results from heteroscedastic stochastic frontier models. The Manchester School, vol. 69, pp. 656–676.
[2] Halkos, G. and Salamouris, D. (2004). Efficiency measurement of the Greek commercial banks with the use of financial ratios: A data envelopment analysis approach. Management Accounting Research, vol. 15, pp. 201–224.
[3] Pasiouras, F. (2006). Estimating the technical and scale efficiency of Greek commercial banks: The impact of credit risk, off-balance sheet activities, and international operations. University of Bath, School of Management, 2007, vol. 16.
[4] Varias, A. and St. Sofianopoulou. (2012). Efficiency evaluation of Greek commercial banks using DEA. Journal of Applied Operational Research, vol. 4, no. 4, pp. 183– 193.
[5] Kuchler, A. (2013). The efficiency of Danish banks before and during the financial crisis. A comparison of DEA and SFA (Working Papers 2013/87). Danmarks National Bank. Retrieved from: http://www.nationalbanken.dk/C1256BE9004F6416/ side/9BC2299AE14FCD70C1257C3D0062B259/$file/DNWP%2087_2013.pdf
[6] Gaganis, C. and Pasiouras, F. (2009). Efficiency in the Greek banking industry: A comparison of foreign and domestic banks. International Journal of the Economics of Business, vol. 16, pp. 221–237.
[7] Georgantopoulos, A. and Tsamis, A. (2013). Assessing the efficiency of commercial banks in Greece during the financial crisis: A linear approach in conjunction with financial analysis. Journal of Money, Investment and Banking, vol. 28, pp. 32–46.
[8] Thalassinos, I. E., Stamatopoulos, Th., and Thalassinos, E. P. (2014). The European sovereign debt crisis and the role of credit swaps, in in W. T. Ziemba and A. G. Malliaris (eds.) The WSPC Handbook of Futures Markets, in the memory of Late Milton Miller (Nobel 1990), World Scientific Handbook in Financial Economic Series Vol. 5.
[9] Thalassinos, E. P. (2014). Credit default swaps and sovereign debt in Eurozone, in D. Milos Sprcic (ed.) Risk Management: Strategies for Economic Development and Challenges in the Financial System, pp. 141–171. New York: Nova Publishers.
[10] Thalassinos, I. E., Liapis, K., and Thalassinos, E. J. (2011). A holistic framework for measuring a bank’s financial health. Retrieved from: http://ssrn.com/abstract= 1787626
[11] Papagiannis, G. D. (2014). Measurement of efficiency in Greek banking industries in the light of the financial crisis. European Research Studies, vol. XVII, no. 1, pp. 19–38.