Building: Parallel Session 2
Room: A
Date: 2020-10-27 02:45 PM – 04:00 PM
Last modified: 2020-10-12
Abstract
The modern economic system stated that the financial and banking system is the heart of a nation’s economy. This is because the duty of the banking sector to pump capital (money) into the pulse of the economy. The banking industry as a heart affects the whole economic sector from the small scale to the large ones. Besides as the heart of the modern economy, banking also has a role as an intermediation institution in the implementation of national payment transactions. The banking sector is not free from risks, one of the factors that need special attention to maintain depositor’s trusts. Depositor’s trust is also maintained by presenting consistent and increasing financial performance.
This study analyzed the effect of CEO’s characteristics on a bank’s financial performance mediated by environmental performance. The data used in the analysis are 45 publicly traded banks (Tbk) in Indonesia listed in Indonesia Stock Exchange (IDX) in 2012 – 2018. The data were analyzed using path analysis on AMOS 23.0.0 software to test the model and hypotheses proposed in this study.
The analysis results show that there is a relationship between gender, age, experience as director (vice-director inside a corporation, president director inside a corporation, and Vice Director in Other Corporation) on ROA mediated by GRI. As for educational background and the experience as director (number as other corporation president director dan Number as Other Corporation Vice Director) do not affect ROA mediated by GRI.
Keywords: CEO’s characteristics, gender, age, education background, experience as a director, bank’s financial performance, GRI.