The Effect of Religiosity Factors on Regional Heads in Choosing a Spin-off or Conversion Option for Regional Development Banks

摘要

The purpose of this paper is to examine the factors that influence a regional head in choosing the spinoff or conversion options for regional banks which according to Law No. 21 of 2008, conventional banks that have Sharia Business Units must carry out a spinoff or conversion in 2023. This study uses logistic regression to see the influence of regional head religiosity factors that measure the ideological dimensions projected with Islamic and nationalist party affiliations, religiosity factors population that is projected with the ratio of Muslim population and divorce disparity and using the control variable in the form of demographic factors of the regional head for the choice of spinoff or conversion. with the ratio of Muslim population having a negative effect on conversion decision making.