GCG disclosure and risk profile on bank performance: case studies on state-owned banks

This study aims to examine the effect of corporate governance disclosures and risk profiles on bank performance where bank performance was measured by return on assets (ROA) and corporate governance disclosures were measured by a self-assessment conducted by the bank. Moreover, the risk profile consists of credit risk was measured by a non-performing loan (NPL), liquidity risk was measured by loan to deposit ratio (LDR), operating risk was measured by the operating expenses to operating income ratio (OEIR), and capital risk was measured by the capital adequacy ratio (CAR). The population in this study was 4 state-owned banks because only 4 banks were taken as samples. The observation period is 6 years (2011-2016). To test the hypothesis, the author uses multiple regressions. The results show NPL and CAR do not affect bank performance. LDR and GCG disclosure have a positive effect on bank performance. While OEIR has a significant effect but negative on state-owned bank performance.