doi: 10.18178/ijimt.2022.13.2.918
The Effect of Productive Asset Diversification on Discretionary Behavior on Allowance for Loan Losses
Ignatia Ryana Widyatini
,
- Faculty of Business and Economics, the Universitas Atma Jaya Yogyakarta of Indonesia, Indonesia.
Abstract
The first objective of this study is to determinewhether the discretionary behavior is built by diversification orconcentrated productive asset financing. Discretionarybehavior reflects the value of additional losses to formAllowance for Loan Losses or ALL based on severalmanagement motivations. The formation of ALL aims tomaintain the quality of productive assets and the health ofbanks. Discretionary behavior is estimated from the differencebetween the total ALL and the non-discretionary componentpresented through a portfolio of economic impairment.Specifically, the concentration of banking asset financing in thisstudy is classified based on the type of loan. This study examinesthe effect of the concentration of asset financing on loandistribution toward discretionary behavior. This research wasconducted in several commercial banks in Indonesia.
Keywords
- Discretionary behavior
- allowance for loanlosses
- productive assets
How to Cite
Ignatia Ryana Widyatini and Raymundo Patria Hayu Sasmita, "The Effect of Productive Asset Diversification on Discretionary Behavior on Allowance for Loan Losses," International Journal of Innovation, Management and Technology, vol. 13, no. 2, pp. 37-41, 2022. https://doi.org/10.18178/ijimt.2022.13.2.918
Copyright & License
Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).