Abstract
Paper purpose is to analysis the value generated by the Japanese and Non Japanese financial institutions in Indonesia banking from 2013-2018. The paper concentrated on the 16 foreign banks contained of seven affiliates of Japanese banks and nine affiliates of Asian Non-Japanese Banks. The shareholders’ origination will be the independent parameter, and the main financial measurements are the capital structure, credit risk, efficiency, profitability, and firm size, will be the dependent parameter. This paper used non-parametric Mann Whitney Test, besides parametric by Regression of Dummy Variable. The empirical outcomes indicate that there are variances in capital structure, credit risk, efficiency, and firm size. There is no significant variance in profitability ratio. Japanese banks are more noticeable in terms of firm size and well in efficiency ratio and loan to deposit ratio. However, Japanese banks have a higher non-performing credit. The outcomes are significant at a = 1% for capital structure and efficiency ratio.
Highlights
When Asia faced a financial crisis from 1997 to 1998, few nations were devastated by banking and financial crisis
Indonesia’s banking industry competition is overgrowing due to the presence of foreign banks, which is very good for the customers
There are five significant ratios selected as the research variables, namely the capital structure, credit risk, efficiency, profit ratio, and firm size
Summary
When Asia faced a financial crisis from 1997 to 1998, few nations were devastated by banking and financial crisis. One of the countries experiencing the banking crisis in 1998 in Indonesia. Other foreign banks, such as Woori Bank, China Construction Bank, J Trust Bank, Industrial and Commercial Bank of China, State Bank of India, and Shinhan. In a direct and indirect manner, foreign investors made a substantial investment in The Indonesia’s banking industry. Indonesia’s banking industry competition is overgrowing due to the presence of foreign banks, which is very good for the customers. The best shareholding proportion of foreign ownership is 20.16% (Yang et al, 2019)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
