Market Discipline Mechanism : A Quantitative Approach (The Study Of Islamic Banking in Indonesia 2011-2014)

The level of disclosure of financial statements is a source of information for stakeholders to take an economic decisions. In a banking context, it refers to the customer's decision to invest in the bank. The next question, whether the level of disclosure of financial statements will affect the customer's decision to keep or attract deposits which is illustrated by changes in the number of third-party funds. As a consequence of the concept profit loss sharing is a fundamental principle of Islamic banks, the customer of Islamic bank should have a high sensitivity for the company. It means, customers of Islamic banks will be more react to the information that disclosed in the financial statements. This study aimed to examine the effect of the level of disclosure of financial statements to changes in the number of third-party funds. The research is a study on Islamic Banks in Indonesia period 2011-2014. Data were analyzed using a regression model. The study states that the level of disclosure of financial statements has a significant positive effect on changes in the number of third-party funds. This indicates that there is a market disciplin mechanisms on Islamic Banks in Indonesia. But henceforth, this research still needs to be reinforced with a qualitative approach, test for other factors that influence changes in the number of third party funds, as well as the comparison test with conventionalcommercial banks.

 

Kategori : Riset dan Analisa FE UNISMA
Penulis : Ayub Wijayati Sapta P
Redaksi  : Alfian Budi P


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