Corporate Governance, Credit Risk, and Financial Literacy for Small Medium Enterprise in Indonesia

Mutamimah, Mutamimah; Tholib, Mochammad; Robiyanto, Robiyanto

doi:10.3846/btp.2021.13063

Cited by 22 publications

(10 citation statements)

References 27 publications

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“…As Table 8 shows, government rules play a critical role in BTM risk management, serving as a reference or standard for operational implementation and supervision in managing BTM risk, as well as for evaluating implementation and recommendations in risk management. Regarding risk management, BTM managers seem to really want a risk monitoring committee (Mutamimah et al , 2021). This shows that the risk committee has not yet materialised in BTM.…”

Section: Resultsmentioning

confidence: 99%

“…In transactions related to IMFIs, there is asymmetric information between IMFIs and customers, which can lead to opportunistic behaviour by the customers and pose risks to IMFIs. Further, it must be noted that corporate governance is the basic framework to effectively reduce risk (Mutamimah et al , 2021). Kyereboah-Coleman (2007) argued that the current risk management systems in most MFIs are not comprehensive, and they are more inclined towards handling certain risks; for example, they are still limited to the internal control system for financial reporting (Wardiwiyono, 2012).…”

Section: Introductionmentioning

confidence: 99%

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Risk management practices of Islamic microfinance institutions to improve their financial performance and sustainability: a study on Baitut Tamwil Muhammadiyah, Indonesia

Mutamimah

Zaenudin

Cokrohadisumarto

2022

QRFM

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Purpose This study aims to explore the risk management practices of Islamic microfinance institutions (IMFIs) to increase their financial performance and sustainability. Design/methodology/approach This research used a qualitative approach to increase financial performance and sustainability. The study population comprised the Baitut Tamwil Muhammadiyah (BTM) in Central Java Province, Indonesia. The data collection techniques included questionnaires and an in-depth interview, and the framework was validated by the main participants. Findings This study showed that BTMs have implemented risk management using different standards. However, such risk management is carried out partially while prioritising certain risks and using different methods. The risk of Sharia compliance is the most recognised risk, while financing and operational risks are the most anticipated, because these two risk types directly impact financial performance and sustainability. In general, a risk management model can improve financial performance and sustainability. Nevertheless, there are obstacles in implementing risk management at BTMs, which include weak human resources, the employee selection process, human resource development and a good control system. Originality/value This research explored best practices for risk management in IMFIs and may contribute to the development of risk management in such institutions to maintain the financial performance and sustainability of their services.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Risk management practices of Islamic microfinance institutions to improve their financial performance and sustainability: a study on Baitut Tamwil Muhammadiyah, Indonesia

Mutamimah

Zaenudin

Cokrohadisumarto

2022

QRFM

Self Cite

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“…The research instrument was adopted from several previous studies, namely accountability, responsibility, transparency, fairness, and independence, adapted from [19], [20], while zakat management was adapted from [21], [22]. Data processing uses the SEM analysis method with the Smart PLS 3.0 test tool, to prove the established hypothesis.…”

Section: Methodsmentioning

confidence: 99%

The impact of Good Corporate Governance on the management of Zakat in the city of Medan

Nasution,

Siregar,

Rahman

et al. 2024

Proceedings of the 5th International Conference on Innovation in Education, Science, and Culture, ICIESC 2023, 24 October 2023,

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The ethical principles and structures guiding zakat institutions, encompassing administrators, donors, beneficiaries, and society, are increasingly recognized as critical for successful zakat implementation. The study aimed to evaluate the impact of good corporate governance principles on zakat management in Medan . The research method involves collecting data through surveys and interviews with related parties and employees at zakat management institutions in Medan and data analysis using a quantitative approach. The discussion results show that implementing good corporate governance has a significant positive effect on zakat management in the city of Medan. This can be seen from the increase in transparency, accountability, responsibility, independence and justice in the collection and distribution of zakat in Medan. Thus, this research provides a better understanding of the importance of good corporate governance in the context of zakat management.

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“…Authors such as Mutamimah et al (2021), Zhang et al (2022), and Ogunmokun et al (2024) argue that the provision of credit to companies is based on the analysis of corporate information to assess repayment capacity. However, the information asymmetry between banks and companies poses a challenge, making credit risk a critical concern.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Corporate Indebtedness in Portugal: An Analysis of Financial Behaviour Clusters

Tavares,

Santos,

Oliveira

et al. 2024

Risks

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Corporate indebtedness is a powerful tool in determining a company’s financial health with impacts on its image and reputation. The main objective of this research is to study the determining factors in corporate indebtedness in Portugal. It also has the secondary objectives of creating clusters of companies’ behaviour in relation to the use of credit and verifying their differences in relation to the characteristics of the companies. It uses a quantitative methodology based on a questionnaire survey of 1957 Portuguese companies. The results of the factor analysis show the formation of six determining factors in corporate indebtedness, namely the negotiating relationship with banks, financing, cycle and indebtedness, company operating performance, guarantees used to obtain bank financing and financing risk analysis as well as secondary forms of bank financing. The application of cluster analysis to the six factors formed led to the classification of companies into three clusters: the resilient financial cluster, the operational excellence cluster and the strategic financial cluster. There are several statistically significant differences in the corporate financing factors in relation to the clusters to which they belong. The evidence of the factors and clusters explaining company financing provides insights for improving credit access practices and for implementing public policies that facilitate access to credit and promote economic development.

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Corporate Governance, Credit Risk, and Financial Literacy for Small Medium Enterprise in Indonesia

Cited by 22 publications

References 27 publications

Risk management practices of Islamic microfinance institutions to improve their financial performance and sustainability: a study on Baitut Tamwil Muhammadiyah, Indonesia

Risk management practices of Islamic microfinance institutions to improve their financial performance and sustainability: a study on Baitut Tamwil Muhammadiyah, Indonesia

The impact of Good Corporate Governance on the management of Zakat in the city of Medan

Determinants of Corporate Indebtedness in Portugal: An Analysis of Financial Behaviour Clusters

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