Universal Journal of Accounting and Finance Vol. 9(4), pp. 542 - 547
DOI: 10.13189/ujaf.2021.090402
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Determinants of Bank Efficiency in ASEAN5: Size as a Control Variable


Randi Anto , Irene Rini Demi Pangestusti *, Eriesta Novia Purwandari
Department of Management, Faculty of Economics and Business, Universitas Diponegoro, Indonesia

ABSTRACT

Purpose – The purpose of this study was to analyze the effect of Bank Age, Loan to Assets Ratio (LAR), Net Interest Margin (NIM), and non-interest margin (Non NIM) on bank efficiency, especially in ASEAN-5 countries (Indonesia, Singapore, Thailand, Malaysia and Philippines). In this research, bank size was used as a control variable. Design/methodology/approach – The sample of the research was taken form general banking entities listed in each country over the period of 2014-2018. Purposive sampling method was used to select 58 banks as the sample population. We use two-stage methodology in this research by using Data Envelopment Analysis (DEA) to calculate bank efficiency and Multiple Regression Analysis (MRA). Findings- The result showed that capitalization and bank age had a negative significant effect on bank efficiency, while the variable of Loan to Asset Ratio (LAR), Net Interest Margin (NIM) and No-NIM had a positive significant effect on bank efficiency. Originality/value – The measurement of bank efficiency was conducted by utilizing DEA in this study to examine the bank efficiency in ASEAN 5.

KEYWORDS
Bank Efficiency, Capitalization, Bank Age, Loan to Asset Ratio (LAR), Net Interest Margin (NIM), Non-interest Margin (Non NIM), Data Envelopment Analysis (DEA)

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Randi Anto , Irene Rini Demi Pangestusti , Eriesta Novia Purwandari , "Determinants of Bank Efficiency in ASEAN5: Size as a Control Variable," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 542 - 547, 2021. DOI: 10.13189/ujaf.2021.090402.

(b). APA Format:
Randi Anto , Irene Rini Demi Pangestusti , Eriesta Novia Purwandari (2021). Determinants of Bank Efficiency in ASEAN5: Size as a Control Variable. Universal Journal of Accounting and Finance, 9(4), 542 - 547. DOI: 10.13189/ujaf.2021.090402.