Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia

Research Article

CEO Overconfidence and Risk-Taking Behaviour in Indonesian Banking Sectors

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  • @INPROCEEDINGS{10.4108/eai.3-8-2021.2315136,
        author={Darus  Altin and Jakaria  Jakaria},
        title={CEO Overconfidence and Risk-Taking Behaviour in Indonesian Banking Sectors},
        proceedings={Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia},
        publisher={EAI},
        proceedings_a={LEPALISSHE},
        year={2022},
        month={1},
        keywords={cascading; performance planning; key performance indicators; performance report},
        doi={10.4108/eai.3-8-2021.2315136}
    }
    
  • Darus Altin
    Jakaria Jakaria
    Year: 2022
    CEO Overconfidence and Risk-Taking Behaviour in Indonesian Banking Sectors
    LEPALISSHE
    EAI
    DOI: 10.4108/eai.3-8-2021.2315136
Darus Altin1,*, Jakaria Jakaria2
  • 1: Faculty of Economics and Business, Bengkulu University, Bengkulu, Indonesia
  • 2: Faculty of Economics and Business, Trisakti University, Jakarta, Indonesia
*Contact email: altin@ubb.ac.id

Abstract

The regional governments make organizational decisions that must be in line with goal setting.The government management system is expected to focus on increasing accountability while improving results-oriented performance (outcome) at the same time. Cascading is a process of decreasing and aligning organizational targets to work units at all levels in the organization in a hierarchical manner. This process can be carried out to the lowest level, namely to the individual level. Therefore, there is an alignment of roles at all levels of the organizational unit. Cascading carried out in the regional government greatly affects the performance of the regional government in the Government Agency Performance Accountability System (Indonesian: Sistem Akuntabilitas Kinerja Instansi Pemerintah (SAKIP)). In this study, researchers applied a qualitative approach with a descriptive analysis method. The results showed that, in general, cascading has been carried out to improve the quality of governance in Kerinci Regency, Jambi Province and Rejang Lebong Regency, Bengkulu Province. However, the implementation of cascading in achieving the Key Performance Indicators (KPIs) for Regional Heads still needs to be revised or improved so that all Regional Apparatus Organizations (Indonesian: Organisasi Perangkat Daerah (OPD)) can align the KPIs for Regional Heads with the KPIs for Regional Apparatus Organizations to attain the vision and mission of the regional government.