Banking Companies Research Articles

The Moderation of Financial Discernment In Analyzing The Effect of Audit Opinion, Management Change, and Audit Delay on Voluntary Auditor Switching In Banking Companies Listed on The Indonesia Stock Exchange

In Indonesia, the development of public companies is one of the influencing factors for the emergence and development of the public accounting profession. This study aims to analyze the influence of audit opinions, management changes, and audit delays on voluntary auditor switching by moderating the variables of financial difficulties. This study is focused on banking companies listed on the Indonesia Stock Exchange (IDX) for a certain period. The research method uses moderation regression analysis with secondary data obtained from the company's annual report. The results show that audit opinions and audit delays have a significant influence on voluntary auditor switching. The change of management did not show a significant influence on the decision to replace the auditor. In addition, the variable of financial difficulties moderated the relationship between audit opinions and voluntary auditor switching, but did not moderate the relationship between audit delay or management change and voluntary auditor switching. These findings provide important insights for banking companies in making strategic decisions related to the selection of external auditors and financial management.

The effect of corporate governance, financial distress, tax incentives, and firm size on accounting conservatism in the Indonesia banking sectors

The objective of this study is to examine the effect of corporate governance, financial distress, tax incentives, and firm size on accounting conservatism in the banking sector in Indonesia. Corporate governance mechanisms in this study are represented by managerial ownership and institutional ownership, reflecting the role of governance structures in influencing accounting practices. The study analyzes a total of 75 data units derived from 25 banking companies listed on the Indonesia Stock Exchange (BEI) during the 2021-2023 period, selected through purposive sampling. This research employs a quantitative research method and relies on secondary data sources, such as annual reports and company financial statements. The analysis technique used is multiple linear regression technique using Stata version 13. The results of the study prove that there is a negative significant effect of financial distress and tax incentives, but there is no significant effect of managerial ownership, institutional ownership, bank size on accounting conservatism.

The Role of Good Corporate Governance in Stock Price Determination: Evidence from BRI

Corporate governance refers to the mechanisms and processes that direct and control a company to ensure its operations are efficient and aligned with its objectives. In the context of BRI Bank, the corporate lending program poses a significant risk to its financial stability, especially amidst the ongoing economic crisis. The deterioration in the quality of non-performing loans (NPLs) has implications for evaluating asset and debt risk quality. This study employs a quantitative research method to measure data and generalize the results from a sample to the broader population. The sample consists of BRI Bank companies for the period 2017–2023. A census technique is applied, and the data is analyzed using panel data analysis to assess the relationship between corporate governance and stock prices. The findings reveal that good corporate governance has a significant effect on stock prices when considered collectively. However, when the corporate governance variable is examined individually, it does not show a significant impact on stock prices. These results suggest that while good corporate governance contributes to stock price performance in a combined context, its isolated effect is not as pronounced. The findings highlight the importance of comprehensive governance practices in influencing financial outcomes, particularly in the face of economic challenges.

The Effect of Third Party Funds, Return on Assets, Loan to Deposit Ratio, Capital Adequacy Ratio, Operating Expenses and Operating Income on Credit Distribution in Banking Companies Listed on the Indonesia Stock Exchange

This study aims to determine whether third party funds, return on assets, loan to deposit ratio, capital adequacy ratio and operating expenses of operating income affect the distribution of banking credit. This study is a quantitative study. Sampling was carried out using purposive sampling, therefore there are 26 banking companies included in this category. The hypothesis of this study was tested using multiple linear regression. The results of the study describe various results. The conclusion of the study is that third party funds have an influence on the distribution of banking credit and are not significant while return on assets, loan to deposit ratio, capital adequacy ratio, and operating expenses of operating income do not have an influence and are significant on the distribution of company credit.

The Impact of Pre and Post-Mergers and Acquisitions on the Financial Performance of Selected Banks in Pakistan

The purpose of this study is to investigate the financial performance of merging banks in Pakistan in a pre and post-scenario to identify the impact of key indicators on the performance of acquirer company. For this purpose, data for 4 banking companies have been taken from financial year 2005 to 2022. Banking companies include Meezan Bank Limited (MBL) Muslim Commercial Bank Limited (MCB) Al Baraka Bank (Pakistan) Limited (ABPL) and Bank Islami Pakistan Limited (BIPL). Paired sample t-tests and regression analysis was used to identify significant differences and impact on pre and post-merger. Results revealed that there were significant positive differences in specific financial indicators as Return on Assets on MCB only. However, results indicated in pair sample t-test that Net Interest Margin was significant for MCB and ABPL, whereas Debt to Equity was significant for all banks. Further Capital Adequacy Ratio revealed significant results for MBL and ABPL but Total Loan to Total Deposit has significant outcome for BIPL only. It is important that results for Non-Performing Loans to Total Loans were significant for MBL, MCB and BIPL but Earning per Share has been found significant for MBL. The key important indicators of Market Price per Share is found significant for all banks. Dividend per share has significant outcome for ABPL only. Regression results revealed that in post-merger capital adequacy ratio, earning per share has positive but dividend per share and market price per share has significance negative impact on return on assets at (p<0.05) but no significant impact was found pre-merger context. The findings provide valuable insights for policymakers to strategically focus on future corporate restructuring and to ensure financial stability.

PROFITABILITAS BERPERAN SEBAGAI MODERATING VARIABEL : PENGARUH STRUKTUR MODAL DAN HARGA SAHAM TERHADAP FIRM VALUE (STUDI EMPIRIS PADA PERUSAHAAN SUB SEKTOR PERBANKAN DI BURSA EFEK INDONESIA TAHUN 2018-2022)

The purpose of this study was to determine the effect of Capital Structure and Stock Prices intensity Firm Value with Profitability as a moderating variabel. This study uses a sample of Banking companies listed on the Indonesia Stock Exchange in 2018-2022. The data used in this study are financial reports and annual reports. The sampling tecnique used was Purposive Sampling. The population used in this study were 47 banking companies with a sample of 27 banking companies selected with a total sample of 135 data. To test the hypothesis carried out with a significance test, namely the F tes, t test and Moderated Regresion Analysis (MRA) test with a significance level of 5%. Data processing used eviews 10. The results of this study indicate that Capital Structure has effect on Firm Value, and Stock Prices have an effect on Firm Value. Mean while, Capital Structure and Stock Price simultaneously affect Firm Value. Research result profitability can as a moderating variable the influence of Capital a Structure on Firm Value, and Profitability as a moderating variable can moderate the influence of Stock Price on Firm Value.

Analysis Influence Of Total Quality Management On Competitive Advantages With Technological Innovation And Knowledge Management As Moderating Variables

Purpose: This study aims to analyse the effect of total quality management on competitive advantage at PT Bank Pembangunan Dearah Tbk. with technological innovation and knowledge management as moderating variables. Methodology/approach: Primary data were collected from 373 Bank Jatim employees through questionnaire distribution. Data were analysed using Partial Least Square (PLS) statistical technique to test the relationship between variables. Findings: Total quality management is proven to be a factor that can affect competitive advantage. Technological innovation is able to strengthen the influence of total quality management on competitive advantage, but knowledge management is unable to strengthen or weaken the influence of total quality management on competitive advantage. Practical implications: This research is expected to be a consideration for the management of banking companies in integrating technological innovation and knowledge management through the application of total quality management, so that companies can achieve competitive advantage in facing the industrial revolution 4.0. Originality/value: This study adds moderating variables of technological innovation and knowledge management, which are thought to have a combined influence in the relationship of total quality management to competitive advantage which aims to answer the inconsistency of previous research findings. This study also uses the distribution of questionnaires to Bank Jatim employees, thus providing research results that are relevant to current conditions.

THE ROLE OF POLITICAL CONNECTIONS IN MODERATING THE EFFECT OF BOARD DIVERSITY ON FINANCIAL DISTRESS

This research aims to examine the role of political connection in moderating the effect of board gender diversity and board size on financial distress. A sample of 46 banking companies listed in Indonesia Stock Exchange between during the 2021-2023 period was selected using a purposive sampling method. Panel data regression were used for data analysis. The results of the research exhibit that board of commissioner gender diversity has no effect on financial distress; board of director gender diversity has a positive effect on financial distress; and board size has a negative effect on financial distress. Political connections cannot moderate the effect of gender diversity, but can moderate the negative effect of gender diversity and the positive effect of board size on financial distress. This finding, as such, can provide insights for corporate management and regulators to determine the most effective corporate board design to improve the companies financial performance and avoid financial distress. Keywords: Board diversity; board size; corporate governance; political connection; financial distress

The Influence of Credit Risk, Liquidity Risk and Capital Adequacy on Financial Performance in the Conventional Banking Sector Listed on the Indonesian Stock Exchange for the 2021-2023 Period

This research aims to examine the influence of credit risk, liquidity risk and capital adequacy on financial performance in the conventional banking sector listed on the Indonesian Stock Exchange for the 2021-2023 period. The sampling technique used in this research is Purposive Sampling. The population in this study was 42 companies and 38 companies met the requirements to be the sample. The type of data used in this research is secondary data and multiple linear regression analysis methods. Credit Risk is measured using Non Performing Loans. Liquidity Risk is measured using the Loan to Deposit Ratio. Capital Adequacy is measured using the Capital Adequacy. The financial performance of banking companies is measured using Return On Assets. The Classical Assumption Test states that the data in this study are normally distributed and produce a regression model that is free from multicollinearity, heteroscedasticity and autocorrelation. Based on the partial test analysis, the results obtained are : (1) Credit Risk has a positive and significant effect on Financial Performance. (2) Liquidity Risk has a positive and significant effect on Financial Performance. (3) Capital Adequacy has no significant effect on Financial Performance. And the results of the F Test in this research show that Credit Risk, Liquidity Risk and Capital Adequacy simultaneously influence Financial Performance. The findings in this research have implications for banking companies to pay careful attention to financial management in order to obtain maximum profits.

Investigating the impact of corporate governance and investment decisions on financial performance and firm value in insurance and banking sectors

This study examines the impact of corporate governance and investment decisions on financial performance and firm value in the insurance and banking sectors. Additionally, the moderating effect of financial technology innovation is integrated into the model. Using a purposive sampling technique, 40 insurance and banking companies were selected as the analytical units, with secondary data extracted directly from the Indonesian Stock Exchange (IDX) database from 2018 to 2022. The results from Partial Least Squares-Structural Equation Modeling (PLS-SEM) indicate that corporate governance and investment decisions significantly impact financial performance and firm value in the insurance and banking sectors in Indonesia. Moreover, fintech technology innovation significantly moderates the relationships between corporate governance and financial performance, as well as corporate governance and firm value, but does not significantly moderate the relationship between investment decisions and firm value. Lastly, the effects of these relationships are found to be more profound in the banking sector compared to the insurance sector.

Impact of Internet Banking on the Financial Performance of Indonesian Banking

This research aims to identify variables that influence bank performance in banking companies listed on the Indonesia Stock Exchange. The addition of the capital adequacy ratio variable as an independent variable is a novel part of this research. This research method includes collecting data from 22 banking companies over a five year period (2019-2023) with a total of 110 data that meet the criteria by applying data processing analysis using panel data regression analysis techniques. The results of this research show that (1) The internet banking variable has a positive and significant influence on financial performance. (2) The loan to deposit ratio variable has no significant effect on financial performance. (3) The bank size variable has a positive and significant effect on banking return on assets (4) The capital adequacy ratio variable has no significant effect on banking return on assets.

Pengaruh Brand Ambassador Baekhyun Exo Melalui Instagram Terhadap Brand Image Allobank

The development of digital industry in Indonesia continues to experience a significant increase, especially in the banking world. The presence of various new digital banks will cause intense competition in capturing market potential. In this condition, it makes one of the digital bank companies AlloBank compete to build a strong brand image by using brand ambassadors to attract the attention of its customers through AlloBank's official Instagram account. The presence of South Korean culture in various circles of Indonesian society made the AlloBank company choose Baekhyun EXO, who is a Korean idol, as its brand ambassador. The existence of this phenomenon, this study aims to see whether there is an influence of Baekhyun EXO's brand ambassador which is studied using VisCAP theory on AlloBank's brand image. This research uses quantitative methods by distributing questioners to 100 respondents who are followers of AlloBank's official Instagram account. The data analysis technique in this study uses the Simple Linear Regression test which is carried out using Jamovi. The research results show that brand ambassador Baekhyun EXO has a significance value of <0.001 (<0.05) and a positive influence on AlloBank's brand image of 22%, while 78% is influenced by factors other than the brand ambassador

Pengaruh Likiuditas, Profitabilitas, Kecukupan Modal dan Resiko Kredit terhadap Nilai Perusahaan

This research aims to determine the influence of liquidity, profitability, capital adequacy and credit risk on company value in the conventional banking sector listed on the Indonesia Stock Exchange. The analytical method used in the research is multiple regression with the help of SPSS (Statistical Program for Social Science). The population in the research is the conventional banking sector listed on the Indonesia Stock Exchange in the 2018 - 2022 period with a total of 43 companies. The method used for the sample used purposive sampling. The results of the research show that liquidity has a negative effect on company value, profitability has no effect on company value, capital adequacy is proxied by the Capital Adequacy Ratio having a positive relationship and has no significant effect on company value, and where Non-Performing loans have an effect on company value. The implications of banking companies for issuers in Indonesia are the importance of awareness in growing company value by considering all aspects of liabilities because it will refer to the direction of financial position, as well as taking into account the adequacy of credit reserves as an indicator of the health of banking asset quality

Sharia Banking Stocks: The Role of Profitability and Financial Performance

The increasing awareness among Muslims to adhere to Sharia principles in their daily lives has contributed to a rise in investment in Sharia-compliant stocks, particularly within the Sharia banking sector. This sector, which aligns with Islamic principles, offers potential investment opportunities that can be evaluated by analyzing key financial metrics such as profitability and financial performance, derived from company financial reports. This research aims to examine the impact of four financial indicators—Return on Assets (ROA), Return on Equity (ROE), Earnings Per Share (EPS), and Price Earnings Ratio (PER)—on the stock prices of Sharia banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2023. Using a quantitative research approach, the study employs the SPSS version 29 data processing application, utilizing 60 data points from three Sharia banking companies: PNBS, BRIS, and BTPS. The results of the data analysis reveal that Return on Assets (ROA) has a significant positive effect on stock prices, indicating that higher asset returns are associated with higher stock values. Similarly, Earnings Per Share (EPS) also shows a significant positive impact on stock prices, suggesting that increased earnings per share contribute to the appreciation of stock values. On the other hand, Return on Equity (ROE) and Price Earnings Ratio (PER) were found to have no significant effect on stock prices in the context of this study. These findings provide insights into the financial indicators that influence stock prices in the Sharia banking sector, offering valuable information for investors and financial analysts.

Enhancing employee retention in banks: Analyzing the role of talent management, career development, and bank culture

This study aims to investigate how talent management practices, career development, and organizational culture influence employee retention in Jordan’s banking sector. Given the competitive nature of the financial industry, the need to retain talent is critical for organizations. Questionnaires were distributed to 257 full-time employees of various commercial banks in Jordan who have been with their organizations for at least a year, based on this quantitative study. The study made an effort to ensure the sample was both diverse and stable. The study included respondents from various departments, levels, and sizes of banking companies in the sample to enhance its validity. These criteria were designed to include participants who have worked in the organization for a longer period, enabling them to understand the impact of talent management practices and organizational culture. The results reflect that effective talent management practices boost employee retention. The study further attested that career development opportunities and an organizational culture are important moderating factors to strengthen the relationship. According to the research findings, an organization should implement a fully realized approach to talent management with career development and embrace an organizational culture that enhances employee retention.

PENGARUH KECUKUPAN MODAL, RISIKO KREDIT, EFISIENSI OPERASIONAL, DAN LIKUIDITAS TERHADAP PROFITABILITAS PERUSAHAAN PERBANKAN KONVENSIONAL DI INDONESIA

This research aims to analyze the influence of capital adequacy, credit risk, operational efficiency and liquidity on the profitability of conventional banking companies in Indonesia. This research uses associative research using a quantitative approach sourced from company financial reports. The number of samples used was 39 samples of conventional banking companies listed on the Indonesian Stock Exchange in 2020-2022. The sampling technique uses purposive sampling. The data analysis method used is the panel data regression test using eviews 12. The results of this study show that partially the capital adequacy variable (CAR) has no significant effect on profitability (ROA), credit risk (NPL) has no significant effect on profitability (ROA), operational efficiency (BOPO) has a significant negative effect on profitability (ROA) and liquidity (LDR) has no significant effect on profitability (ROA).

COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE FOR BANKING COMPANIES BASED ON BUKU I AND BUKU IV

The research aim is to test the difference between bank performance as measured by ROA and NIM for BUKU I and BUKU IV Banks in Indonesia. The paper uses monthly data from annual report. There is significant difference between bank performance for BUKU I and BUKU IV. Policy makers, investors and other shareholders should consider the results of this study in making important policies. The performance of banks is quite different if they have different amounts of capital. Regarding the research limitations, future research can use the research object not limited to comparative analysis of banking companies, but more to discover research model for bank performance determinants for each bank categories based on capital. Future research may use longer period for better prediction ability.

Pengaruh Penggunaan Mobile Banking dan ATM Terhadap Kinerja Keuangan pada Perusahaan Perbankan Umum yang Terdaftar di Bursa Efek Indonesia Periode 2018-2022

This research aims to determine the effect of Mobile Banking and ATM on Financial Performance. The approach in this research is a quantitative method with a descriptive approach. The data collected in this research is secondary data obtained by researchers via the official website www.idx.co.id of the Indonesian Stock Exchange (BEI). The population of this research is 47 banking companies registered on the IDX. Sample collection was carried out using a purposive sampling method, so the samples that met the criteria in this research were 20 banking companies. Data analysis was carried out using multiple linear regression analysis techniques using SPSS. Based on the partial T test hypothesis testing, it can be concluded that the Mobile Banking and ATM variables partially have a significant positive effect on Return on Equity and Return on Assets. Based on the simultaneous F test hypothesis testing, it can be concluded that the Mobile Banking and ATM variables simultaneously have a significant positive effect on Return on Equity and Return on Assets of general banking companies listed on the Indonesian Stock Exchange in 2018-2022.

Pengaruh Perputaran Piutang dan Perputaran Modal Kerja terhadap Profitabilitas

This research aim to determine the effect of Receivables Turnover and Working Capital Turnover on Profitability in General Insurance Companies Listed on the Indonesia Stock Exchange from 2019 to 2023. The sampling technique for this research is purposive sampling, and the number of samples consists of 9 banking companies. The data collection technique in this research uses secondary data from financial statement data published by General Insurance Companies Listed on the Indonesia Stock Exchange (IDX). The data analysis uses multiple linear regression analiysis, and the data analysis method uses the SPSS 23 application. The test result using multiple linear regression shows that, partially, working capital turnover contributed to a negative and significant effect on profitability, meaning that the increase and decrease in working capital do not affect the profits received by the company. Receivables Tunover hand a positive and significant effect on profitability. Simultan eously, Accounts Receivables Turnover and Working Capital Trunover effected Profitability General Insurance Companies.

The Influence of Ownership Structure, Non-Performing Loans, and Long-Term Debt on the Financial Performance of Banking Companies in ASEAN

The purpose of this study is to obtain empirical evidence of the managerial ownership and institutional ownership, non-performing loans, and long-term debt ratio on the ASEAN Banking Company firms. The sampling technique used purposive sampling, the research samples obtained totaled 40 companies with a research period from 2019-2023 so that there were 200 units of analysis. The research design was quantitative descriptive. The analysis technique in this research is multiple regression analysis method. The results showed that NPL and Institutional ownership has a significant negative effect, managerial ownership and long-term debt ratio has no significant effect on firm’s perfromance. The implication of this research is that companies must pay attention to that NPL and Institutional ownership and those that can affect profitabilty so that company performance can increase.