The effect of Lerner Index and income diversification on the general bank stability in Indonesia

  • Released On
    Tuesday, 28 November 2017
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/bbs.12(4).2017.05
  • Article Info
    Volume 12 2017, Issue #4, pp. 56-64
  • TO CITE АНОТАЦІЯ
  • Cited by
    5 articles
  • 445 Views
  • 81 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

The purpose of this study is to examine the effect of market power and income diversification on the General Bank stability in Indonesia. This research uses a data sample of 20 general banks listed on the Indonesia Stock Exchange for the period of 2011–2014. Data analysis technique used is Multiple Linear Regression. It can be concluded simultaneously that market power and revenue diversification have significant effect on bank stability and, partially, market power has a positive and significant effect on a bank stability. Income diversification has a positive non-significant effect on bank stability.

view full abstract hide full abstract
    • Figure 1. Conceptual framework
    • Table 1. Definitions and measurements of research variables
    • Tabel 2. Descriptive statistics
    • Table 3. F-statistic test
    • Tabel 4. T-statistics test