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Revisiting the Quiet Life Hypothesis in the Indonesian Banking Industry

Year: 2025
Type: article
Abstract: This study explores the Quiet Life Hypothesis (QLH) in different bank groups based on market-dominant and state ownership. The instrumental-variable regression results confirm the quiet life hypothesis at the industry level. At the group level, there is no different tendency to act quiet life between the dominant and non-dominant banks. On the other hand, the State-Owned Banks (SOBs) show a more potent act of quiet life than private banks. While the results for SOB were backed by theory and previous empirical studies, they raised the question of why the private banks conduct such “lazy” behavior.
Language: English
Subfield: Finance
Open Access status: diamond
OpenAlex ID: W7117237286
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