The Journal of Asian Finance, Economics and Business

Korea Distribution Science Association (한국유통과학회)
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Effects of Asset Diversification and Human Capital Efficiency on Bank Performance: Evidence from Asian Countries

  • BAWONO, Suryaning (Faculty of Economics and Business, University of Merdeka Malang) ;
  • SANUSI, Anwar (Faculty of Economics and Business, University of Merdeka Malang) ;
  • SUPRIADI, Bambang (Faculty of Economics and Business, University of Merdeka Malang) ;
  • TRIATMANTO, Boge (Faculty of Economics and Business, University of Merdeka Malang) ;
  • WIDARNI, Eny Lestari (Faculty of Economics and Business, University of Merdeka Malang)
  • Received : 2022.10.10
  • Accepted : 2023.01.15
  • Published : 2023.01.30
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Abstract

This study seeks to determine if the efficiency of bank human resources, as played by human capital, impacts the performance and diversification of banks. This study uses secondary data from data obtained from 385 commercial banks in 33 countries in Asia during the 2010-2020 period with the diversification analysis method. We use the Z-score to measure the amount of standard deviation that must be from earnings (ROAA). We examined it using the Tobit regression technique. According to the regression estimation results, human capital has a significant role in the performance and effective diversification of Asian banks. The human capital efficiency coefficient (HCE) is significantly negative with the cost-to-income ratio (CTIR) and significantly positive with Profitability, Financial Stability, and cost efficiency score. The level of efficiency of human resources has an effective role in increasing human capital which has an impact on bank diversification and performance. The development of human resources in a human capital framework plays an important role in the diversification and improvement of bank performance. Human capital has a significant role in the performance and effective diversification of Asian banks. The level of efficiency of human resources has an effective role in increasing human capital which has an impact on bank diversification and performance.

Keywords

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