Purpose – This paper aims to investigate the efficiency level of Gulf Cooperation Council (GCC) banks on technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE). Both PTE and SE represent the potential factors that influence the efficiency of the GCC banks. In total, 43 GCC banks were observed in this study over the period from 2007 until 2011. Design/methodology/approach – The Data Envelopment Analysis, a non-parametric method using variable returns to scale under Banker, Charnes and Cooper model, was used with assets and deposit (as input) and loan and income (as output). Findings – On average, the results show that many GCC banks are operating within an optimal scale of efficiency. Nevertheless, the results also show managerial inefficiency in the use of resources. Furthermore, the results indicate that, while the larger banks (the 22 largest) tend to operate at constant returns to scale (CRS) or decreasing returns to scale, the smaller banks (the 21 smallest) are susceptible to operate at either CRS or increasing returns to scale. Research limitations/implications – Because of the chosen research method, the results may lack generalisation. Therefore, researchers are encouraged to test the propositions further. An additional implication of the results is that it was able to identify some banks that may become potential targets for outside acquisition. Practical implications – The findings should be useful to banks in the GCC in increasing their efficiencies and recognizing those with a potential for outside acquisition. Originality/value – The findings are valuable because they will facilitate the maintenance of efficient banks in the GCC. This is necessary to enable the countries to maintain a healthy and sustainable economy.

This research examines how the board of commissioners' structure and ownership retention affect IPO underpricing in Indonesia. In this study, we have examined the following three aspects: the number of board of commissioners, percentage of independent commissioners, and percentage of female commissioners. In total, 186 Indonesian companies that have conducted IPO from 2001 to 2016 were included in this study. This study uses multiple regressions to test the hypothesis. Our findings show that ownership retention has a negative implication on underpricing. Furthermore, the number of board of commissioners and independent commissioners has also been determined to reduce the level of underpricing. However, female commissioners were found to have no significant effect on IPO underpricing; furthermore, it demonstrated no significant effect in reducing the level of underpricing. These results show that higher ownership retention, a smaller number of board members, and a higher percentage of independent commissioners can reduce IPO underpricing.JEL Classification: G30, G32How to Cite:Setiawan, D., Prabowo, M. A., Trinugroho, I., & Noordin, B. A. A. (2021). Board of Commissioners’ Structure, Ownership Retention, and IPO Underpricing: Evidence from Indonesia. Etikonomi, 20(1), 185 – 200. https://doi.org/10.15408/etk.v20i1.19156.

The paper investigates whether unobservable firm-specific effects such as managerial ability is a major component of the target capital structure. We apply the system generalized method of moments that accounts for unobservable firm-specific effects. Our results reveal that unobservable firm-specific effects such as managerial ability are a major component that explains most of the cross-sectional variation in firms’ capital structure in Malaysia.Keywords: Capital Structure; Unobservable Effects; System GMM; Malaysia.

This paper examines the effect of capital structure and the moderation effect of risk-taking behaviour of insurance firms on performance of insurers in Nigeria from 1995 to 2002. This study became necessary as literatures in this area and regime are scarce. Secondary data from financial reports of each insurance firm were used. Descriptive statistics were used to describe the characteristics of the data while a two-stage estimation procedure of the fixed effect and random effect models were used to test the hypothetical framework of the study. Result shows that insurance capital structure (measured by equity ratio) had an insignificant negative effect on insurance performance while it had a significant positive effect on insurance performance if measured by technical provision ratios. On average, risk taking behaviour moderates the relationship between technical provision ratio and insurance performance. This study focused on capital structure and moderation effect of risk on performance of insurers in non risk-based capital era. Further study on risk-based capital era will provide more on performance of insurers before and after the implementation of risk-base capital requirement. These findings provide important insight to managers and regulators and investors by fostering more understanding of how to manipulate insurance capital and which source of fund should be used to embark on risky investment to attain superior performance. This investigation adds to literature on insurance capital structure, regulation and risk management and insurance performance in Nigeria.

The aim of this study is to examine the influence of macroeconomic factors on the wealth effects of international merger and acquisitions by Malaysian multinational companies (MNCs). There are three macroeconomics factors: foreign economic condition, gross national product (GNP) correlation between countries and the level of the economic development of a target country. A random sample of 165 international mergers and acquisitions by Malaysian bidding MNCs in 22 countries around the world in the period of 2000-2010 was recruited for this study. A negative relationship between the foreign economic condition and the wealth effect and a positive relationship between the level of economic development of target country and the wealth effect has been found through this study. This implies that the foreign economic condition and level of economic development of the target country significantly determine the value creation of the Malaysian cross-border acquisitions. Therefore, Malaysian MNCs, which intend to use the acquisition mode of entry as the way to venture abroad, should take into consideration these macroeconomic factors in order to increase their foreign investment value.