ABSTRACT
This research aims to examine the effect of managerial ownership on liquidity, agency cost, and the profitability of Credit Society Bank (CSB) in West Nusa Tenggara Province, Indonesia. Five consecutive quarterly financial reports are examined using Partial Least Square (PLS). Results show that managerial ownership does not affect the liquidity, agency cost and financial performance. The bank liquidity level does not affect the agency costs. Agency costs affect negatively the financial performance of CSBs, which can be interpreted that the higher the agency costs of the banks, the lower is the financial performance of the banks.
