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Title: Central bank evaluation of bank performance : a case study of Indonesia
Author: Fasha, Rikie
Awarding Body: University of Reading
Current Institution: University of Reading
Date of Award: 2012
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Defining organisational culture as organisational (bank) practices 'the way we do things around here', this study investigates the impact of organisational culture on organisational performance and fraud in the whole Indonesian banking system, using a set of panel data for the period of 2005-9. The research was motivated to fill-in the gap and to rectify the imbalance on the literature in the current global financial crisis and fraud still occurring environment, despite having been undergoing a programme of restructuring and transformation after Indonesia economic and currency crisis (1997-1998). Using appropriate econometric methods in analysing the secondary highly restricted and confidential data from Bank Indonesia (the central bank), this thesis answers the questions: (i) does organisational culture (sound banking practices) impact banking performance? in terms of a set of comprehensive performance: capital, assets, earnings, liquidity and fraud; (ii) if so, does organizational culture make different performance? based on different types of ownerships; (iii) if so, does organizational culture differentiate high-and-low bank performance. Using fixed-effects regression analysis and confirmed robustness by cross sectional regression analysis after having done Chow test and Hausmann test, multicollinearity and robustness standard error tests, this thesis results confirm all the research questions and sustain the organisational culture and performance link. The results support the widely believe in the literature that suggests organisational culture is a resource that produces better organisational performance, whilst minimising fraud. There is also acknowledgment that organisational culture differentiates high-and low performance banks, as well as based on different types of ownerships, namely: state, foreign, private and regional government banks. The results also suggest the best practices of high performance banks as finding the right balance between management actions and bank supervision functions. In particular, the result also verifies that the better the management and control function practices work-together effectively towards the same direction, the better the performance of the banks.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available