The influence of the proportion of foreign ownership and financial ratio on banking performance in Indonesia in the period of 2017-2019

Yacobo P Sijabat, Heni Hirawati, Deni Ramdani


This research examined the influence of foreign proportions in the shares of banking companies and financial ratios on the performance of companies listed on the Indonesia Stock Exchange in the period 2014-2018.The proportion of foreigners in a banking company uses a comparison of the total amount of foreign shares with the total share ownership.While the proxies of financial ratios are measured using several ratios, including Non-Performing Loans (NPL), Loan to Deposit (LDR), Capital Adequacy Ratio (CAR) and BOPO.Performance proxies are measured using ROA and ROE proxies. The method used is data panel regression using stata 13.0 software.The results of research on the proportion of foreign to the company's performance have a significant effect on ROA alone.

Keywords: Banking Company, Financial Ratios, Proportion of Foreign Ownership

Full Text:


Article Metrics

Abstract view : 32 times| PDF view : 7 times


Al-Amarneh, A. (2014). Corporate governance, ownership structure and bank performance in Jordan. International Journal of Economics and Finance, 6, 192–202.

Bank Indonesia. (2019). Bank Indonesia Regulation No.9/9/PBI/2007 - Amendment To Bank Indonesia Regulation Number 8/21/PBI/2006 Concerning The Quality Rating Of Assets Of Commercial Banks Conducting Business Based On Sharia Principles. Retrieved from No.9_9_PBI_2007.aspx

Boussaada, R., & Karmani, M. (2014). Ownership Concentration and Bank Performance: Evidence from MENA Banks. International Journal of Business and Management, 10, 3.

Chen, S. H., Liao, C. C. (2011). Are Foreign Bank More Profitable than Domestic Banks? Home- and Host-Country of Banking Market Structure, Governance, and Supervision. Journal of Banking and Finance, 35, 819–839.

Defri. (2012). Pengaruh capital adequacy ratio ( CAR ), likuiditas dan efisiensi operasional terhadap profitabilitas perusahaan perbankan yang terdaftar di BEI. Jurnal Manajemen.

Dillard, J. P. (2020). Currents in the study of persuasion. Dalam M. B. Oliver, A. A. Raney, & J. Bryant (Eds.), Media effects: Advances in theory and research (4th ed., pp. 115–129). Routledge

Faisal. (2013). Mekanisme Pengendalian Konflik Keagenan antara Pemegang Saham Mayoritas dan Minoritas: Studi Empiris di Bursa Efek Indonesia. Disertasi. Universitas Gadjah Mada, Yogyakarta. (Tidak dipublikasikan).

Grinblatt, M., & Keloarju, M. (2000).The investment behavior and performance of various investor types: a study of Finland’s unique data set. Journal of Financial Economics, 55, 43-67

IDX. (2019). No Title. Retrieved from

Jackson, L. M. (2019). The psychology of prejudice: From attitudes to social action (2nd ed.). American Psychological Association.

Jiang, L., and J. B. Kim. 2004. Foreign equity ownership and information assymetry: Evidence from Japan. Journal of International Financial Management and Accounting. Vol. 15.184-213

Kobeissi, N., & Sun, X. (2010). Ownership structure and bank performance: Evidence from the Middle East and North Africa Region. Comparative Economic Studies, 52 (3), 287–323.

La Porta, R.& Florencio Lopez-de-Silanes, A. S. (1998). Corporate Ownership Around The World.

Micco, A., Panizza, U. & Yanez,M. (2007). Bank Ownership and Performance: Does Politics Matter? Journal of Banking and Finance, 31, 219–241.

Nguyen, P. (2012). The Impact of Foreign Investors on the Risk-Taking of Japanese Firms. Journal of The Japanese and International Economics, 26, 233–248.

Otoritas Jasa Keuangan. (2019). Hubungan stabilitas Keuangan dan Moneter. Retrieved from

Otoritas Jasa Keuangan. (2018). Statistik Perbankan Indonesia 2017. Ojk.

Putri, M. R. (2007). Pengaruh Kepemilikan Institutional terhadap Volatilitas Return Saham: Perspektif Kebijakan Dividen. Tesis. Universitas Gadjah Mada, Yogyakarta. (Tidak dipublikasikan)

Rahman, P. 2008. Analisis Pengaruh Tingkat kepemilikan Investor Asing terhadap Return Saham dan Volume Perdagangan Saham di Bursa Efek Indonesia. Tesis. Universitas Gadjah Mada, Yogyakarta. (Tidak dipublikasikan)


Saunders, A., Strock, E., Travlos, N. G. (1990). Ownership Structure, Deregulation, Bank Risk-Taking. Journal of Finance, 45, 643–365.

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52, 737–783.

UU No 23. (n.d.). Bank Indonesia. Retrieved from

Vo, X. V. (2015). Foreign ownership and stock return volatility-evidence from Vietnam. Journal of Financial Management. Vol. 30. 101-109


Cited By :


Centre for Research and Community Services
STIE Binaniaga
Sekolah Tinggi Ilmu Ekonomi Binaniaga
Jl. Raya Pajajaran No. 100 - Bogor 16153

WA 08119951871 (sumardjono)

Telp. 0251-8360688  

Fax  0251-8354558
Email :,

e-ISSN : 2580-149X    p-ISSN : 2527-4317