Abstract
A bank-firm relationship in the company occurs when the bank as a lender can obtain more extensive information from other parties. This study aims to examine the simultaneous relationship between bank-firm relationships and company performance. The sample in this study is non-financial socially responsible investment (SRI) firms listed on the SRI KEHATI index. The data analysis method uses two-stage least square (2SLS). The results of this study found that only multiple-bank relationships had a positive and significant effect on company performance. In addition, the company's performance also influences the company's decision to conduct multiple-bank relationships. These results indicate a simultaneous relationship between multiple-bank relationships and the performance of companies that implement socially responsible investment (SRI) in Indonesia. Multiple-bank relationships provide convenience to banks in monitoring companies. While other indicator such as company relations with foreign banks, domestic banks, the number of banks and the bank loan ratio (BLR) were not significant in the simultaneous relationship. The implication of this research is that a company can conduct multiple-bank relationships to diversify external funding sources, reduce credit constraints and reduce strategy failures.
Highlights
A bank-firm relationship in the company occurs when the bank as a lender can obtain more extensive information from other parties
This study aims to examine the simultaneous relationship between bank-firm relationships and company performance
The results of this study found that only multiple-bank relationships had a positive and significant effect on company performance
Summary
Adanya akses perusahaan pada sumber pembiayaan eksternal menjadi penentu utama pertumbuhan perusahaan dan berdampak signifikan pada kinerja kegiatan bisnis (Angori, Aristei & Gallo, 2019; Lee, 2020). Namun pada beberapa penelitian terdahulu juga menemukan bahwa banyaknya bank firm relationship berpengaruh negatif terhadap kinerja dan nilai pasar perusahaan (Castelli, Dwyer & Hasan, 2011; Fok, Chang & Lee, 2004). Fok et al (2004) menemukan hubungan bank asing dengan perusahaan berpengaruh positif dan signifikan terhadap kinerja. Hasil penelitian tersebut menunjukkan bahwa semakin baik kinerja keuangan maka akan semakin kecil kemungkinan perusahaan berhubungan dengan banyak bank asing. Hasil yang sama terjadi pada penelitian Ogawa, Sterken & Tokutsu (2007) menemukan bahwa perusahaan di Jepang yang mempunyai hutang banyak dan memiliki aset yang sedikit cenderung melakukan multiple-bank relationship. Beberapa penelitian terdahulu hanya meneliti hubungan bank-firm relationships (BFR) terhadap kinerja perusahaan saja di Indonesia (Hindrayani, 2017; Firdausi & Sulung, 2019). Perusahaan yang masuk pada daftar indeks SRI KEHATI memiliki reputasi yang baik sehingga dapat memiliki bank-firm relationships dan kinerja yang lebih baik
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