Yogyakarta, October 5th, 2022
The Master of Science and Doctoral Program (MD) FEB UGM has held an open examination for the promotion of Doctor of Management Science for Ph.D. candidate, Deny Edy Widodo. Prof. Eduardus Tandelilin, acted as Chair of the Session. In this open examination, Prof. Mamduh M. Hanafi, M.B.A., Ph.D. as the promoter, and Bowo Setiyono, M.Com., Ph.D. and Eddy Junarsin, M.B.A., Ph.D. as co-promoter. In addition, the assessment team was also present which included I Wayan Nuka Lantara, M.Sc., Ph.D. and Dr. Tastaftiyan Risfandy, M.Sc., Ph.D. The team of examiners were Agus Setiawan, M.Soc.Sc., Ph.D. and Kusdhianto Setiawan, Sivilekonom, Ph.D. Also attending were the families of the doctoral candidates, working relatives from Universitas Muhammadiyah Metro, and invited guests.
The open doctoral promotion examination was opened by the chairman of the session and then given chances to the promoter, co-promoter, assessment team, and examiner team to ask questions related to the dissertation that has been done. The Ph.D. candidate was able to answer questions well and fluently and defended the argument for his dissertation entitled “The Effect of Bank Diversification on Performance and Risk with the Economic and Financial Environment, and Ultimate Ownership as Moderating: Empirical Studies on Commercial Banking in Asia,” so that he successfully graduated with the predicate “satisfying.”
For information, Dr. Deny focuses on empirical studies related to the effect of bank diversification on performance and risk with the economic and financial environment, and ultimate ownership as moderating. The object of this empirical study is commercial banking in the Asian region. The purpose of this study is to examine the effect of bank diversification on banking performance and risk moderated by the economic and financial environment, and ultimate ownership. Thus, the main issue behind this research is the need to pay attention to bank diversification, where bank conditions in each region are relatively different.
Tests in this study using secondary data. Regarding the research design, Dr. Deny uses a sample of commercial banking located in eleven countries in the Asian region because it has various conditions, so it is suitable to be used as a research sample on diversification.
The fundamental thing that distinguishes this study from previous research in terms of bank diversification, which use the four main dimensions of diversification (sources of income, assets, credit, funding) and conduct diversification tests in more detail. Previous studies that tested diversification had heterogeneous results, so this study adds moderating variables in the form of the economic and financial environment and ultimate ownership to explain the effect of diversification in more detail by considering other factors that may have effect. Ultimate ownership is the controller of company decisions related to performance and risk needs to included in the diversification analysis.
The focal point in this study is that the pattern of diversification is diverse. After testing, there are three types from diversification patterns, increasing performance, decreasing performance, and inverted model (increasing performance when diversification is related and decreasing performance when diversification is not related). The diversification pattern in this study is complements one dimension with other diversification dimensions. The moderating role of the economic and financial environment, and ultimate ownership can explain the diversification effect in real way. Countries with more competitive environment (measured by GDP per capita) have diminishing diversification benefits. In this diversification effect, ultimate ownership needs considered because it affects risk-taking policies and decisions.
Research from Dr. Deny made a practical contribution to the banking industry, namely that diversification needs considered because it can support performance along with quite diverse measurements. Diversification is required to maintain banking performance and increase market value (the proportion of non-interest income). When the economic environment is more advanced, it is necessary to increase transparency.
This lecturer at the Faculty of Economics and Business, Universitas Muhammadiyah Metro, officially holds the 5589th doctoral degree who passed the exam at Universitas Gadjah Mada and the 320th who passed the exam at FEB UGM. Prof. Mamduh M. Hanafi, M.B.A., Ph.D. as the promoter, congratulated Dr. Deny, his family, and institutions. He appreciated the struggle of Dr. Deny, who has completed his doctoral studies and achieved the highest new achievements at the academic level. He also congratulated him on serving back at his institutions. Thus, hopefully the knowledge gained can be a provision in contributing and always enthusiastic in various things. He ordered that Dr. Deny stay to maintain the good name of his alma mater and always maintain communication, so he is expected to work together in research and service. (Y)