Banking Subsector Research Articles

DOES FINANCIAL RATIO IMPACT FINANCIAL DISTRESS IN BANKING SECTOR ?

Banking has an important and strategic role in the progress of the Indonesian economy. Bank bankruptcy is also the biggest contributor to the collapse of the economy. This research aims to determine the influence of liquidity ratios (current ratio), leverage (debt ratio) and activity ratio (TATO) on the occurrence of financial distress in the banking subsector listed on the IDX in 2018-2022. The dependent variable in this research is financial distress and the independent variables in this research are Current Ratio, Debt to Asset Ratio, and Total Asset Turnover Ratio. Sample determination was carried out using the purposive sample method. The total population was 42 sample companies from which 14 companies were selected. This research uses descriptive statistical analysis methods, classical assumption testing, multiple regression analysis and hypothesis testing. The results of this research show that liquidity (Current Ratio) has a significant negative effect on financial distress. Leverage (Debt to Asset Ratio) has a significant positive effect on financial distress. Total Asset Turnover Ratio has a positive and significant effect on financial distress. For further research, it is hoped that additional proxies and years of the study population will be added so that the results are more varied.

Pengaruh Faktor Eksternal Terhadap Kualitas Audit pada Perusahaan Subsektor Perbankan yang Terdaftar di Bei Periode 2021- 2023

This study aims to analyze the influence of external factors on audit quality in banking subsector companies listed on the Indonesia Stock Exchange (IDX) during the 2021-2023 period. The external factors analyzed include audit fees, audit tenure, and audit committees. This research uses a quantitative method with a purposive sampling approach, where the research sample consists of banking subsector companies listed on the IDX that meet certain criteria. The data used are secondary data in the form of financial statements obtained from the official IDX website. Data analysis was conducted using logistic regression with SPSS software. The results of the study show that audit fees and audit tenure do not have a significant effect on audit quality. Similarly, the presence of an audit committee also does not have a significant effect on audit quality. These findings provide new insights into the need for a deeper evaluation of the factors influencing audit quality in the banking sector, especially given the critical role of banking institutions in national economic stability.

Pengaruh ROA, NPM, EPS dan DER terhadap Harga Saham Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia

An investor must examine the companies they are investing in in order to ensure that profits are achieved as expected. There are various approaches that can be taken, and one of them is to analyze financial development through the identification of key financial ratios. The purpose of this study was to examine the effect of Return On Assets, Net Profit Margin, Earning per Share, and Debt to Equity Ratio on Stock Price. Data analysis using multiple linear regression analysis was carried out using the help of SPSS version 26 software. This research was conducted on companies included in the banking sub-sector and listed on the Indonesia Stock Exchange during the 2019 to 2022 timeframe. The number of samples is 116 data that meet the research criteria (purposive sampling). The results of the analysis show that partial, only Earning per Share (EPS) has a significant effect on stock prices. However, overall the independent variables show a simultaneous significant effect on stock prices.

Peran Moderasi Komisaris Independen Terhadap Firm Attributes dan Penghindaran Pajak: Studi Empiris Perbankan di Indonesia

This study aims to analyze how leverage and capital intensity ratios affect tax avoidance practices, with independent commissioners acting as a moderating factor. This research applies a quantitative approach to secondary data with documentation techniques and literature review. The population in the study consisted of banking sub-industry companies available on the Indonesia Stock Exchange since 2020-2022. The sample calculation applies purposive sampling technique with a total sample of 84 companies. The analysis method applied in the study is through panel data regression analysis techniques from moderated regression analysis analyzed on E-Views 12 student lite software. The results obtained from this study have shown that leverage and capital intensity ratio have a positive and significant effect on tax avoidance. Furthermore, independent commissioners weaken the influence of leverage on tax avoidance, while not being able to moderate the capital intensity ratio for tax avoidance of industrial companies in the banking sub-sector on the Indonesia Stock Exchange.

Determinants of Risk Management Disclosure Study of Banking Sub-Sector Companies Listed on the Indonesia Stock Exchange

This research aims to analyze how risk management disclosure is seen from the implementation of corporate governance (institutional ownership, audit committee, independent commissioner) and company size, which is the main issue of this article, which business actors hope can mitigate business risks. The population of this research is banking industry companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The research sampling technique that the researcher used was purposive sampling. The analysis technique that researchers use is multiple regression analysis and descriptive statistics. The data analysis that researchers used was with the help of the SPSS version 26 application. The results of this research simultaneously show that company size, audit committee, independent commissioner and institutional ownership jointly influence risk management disclosure. Partially, company size has an effect and is not significant on risk management disclosure, the audit committee has a significant effect on risk management disclosure. independent commissioners have an inversely proportional effect on risk management disclosures, there is an influence of institutional ownership which is not significant and inversely proportional to risk management disclosures

DOES SUSTAINABILITY DISCLOSURE HAVE A MODERATING ROLE IN EXAMINING FIRM VALUE IN BANKING INDUSTRY?

This study seeks to experimentally assess the impact of financial performance on the firm value of the banking subsector and examine sustainability disclosure as a moderating variable. The study focused on banking subsector companies listed on the IDX in 2020-2022. Multiple linear regression was used to test cross-sectional data processed with Eviews 12. The test results demonstrate that profitability has a considerable beneficial impact on firm value. Meanwhile, leverage minimizes firm value because the primary banking business process involves consumer loans and receivables. Therefore, investors pay little attention to company debt. Sustainability disclosure cannot balance the relationship between financial success and firm value. The sustainability disclosures need to meet investors' expectations. Stakeholders may have differing perspectives on the relevance and influence of sustainability data on profitability and firm value.

Pengaruh Capital Adequacy Ratio, Non Perfoming Loan, Loan To Deposit Ratio dan Biaya Operasional Pendapatan Operasional Terhadap Profitabilitas

In 2019-2023, the average profitability in the banking sub-sector has increased and decreased. This study aims to analyse the Capital Adequacy Ratio, Non Performing Loan, Loan to Deposit Ratio and Operating Cost of Operating Income on Profitability. The research methodology used in this study uses quantitative methods. Data obtained from the Indonesia Stock Exchange website (www.idx.co.id) and www.bi.go.id. The population in this study are banking subsector companies listed on the Indonesia Stock Exchange in 2019-2023. The sampling technique used purposive sampling technique with a sample of 22 (twentytwo) companies. Data analysis for hypothesis testing using Multiple Linear Regression with the help of the Statistical Package for Social Sciences (SPSS) version 22 (twenty-two) programme. The results showed that Capital Adequacy Ratio and Loan to Deposit Ratio had no effect on Profitability, while Non Performing Loan and Operating Cost of Operating Income had a negative effect on Profitability.

Effect of inflation and exchange rates on stock prices in banking sub-sector companies listed on The Indonesian Stock Exchange

Purpose: This study aims to determine the influence of inflation variables and exchange rates on share prices. Method: This study used quantitative methods. The population in this study was 47 banking subsector companies listed on the Indonesian Stock Exchange for the 2019-2023 period. The sample in this study comprised 15 companies with 75 financial reports. This research uses classical assumption tests such as the normality test, multicollinearity test, autocorrelation test and heteroscedasticity test, coefficient analysis, coefficient of determination analysis and hypothhesis testing consisting of the t test and f test. Results: The results of this research show that inflation has a partial and significant effect on share prices in banking subsector companies listed on the Indonesian Stock Exchange for the 2019-2023 period because it has a sig. 0.000 < 0.05, and the exchange rate has a significant effect on share prices in banking subsector companies listed on the Indonesian Stock Exchange for the 2019-2023 period because it has a sig value. 0.000 < 0.05. Simultaneously, the effect on share prices in banking subsector companies listed on the Indonesian Stock Exchange for the 2019-2023 period beccause they have sig. equal to 0.000 < 0.05. Limitations: The object of the research is only banking sub-sector companies listed on the Indonesia Stock Exchange for the 2019–2023 period and only includes inflation, exchange rates, and stock prices Contribution: This research aims to contribute to science at the Faculty of Economics and Business, provide reading materials in the library of the University of PGRI Palembang about inflation and exchange rates on the stock prices of companies in the banking sub-sector on the Indonesia Stock Exchange for the 2019-2023 period, and increase the company's insight into the development of stock prices related to inflation and exchange rates.

Strategy To Increase Stock Prices (Study of Bank Sub Sectors Listed on the Indonesian Stock Exchange in 2022)

This research aims to determine the condition of capital structure, profitability and share prices in the banking sub-sector, as well as to test and analyze the influence of capital structure as measured by the debt to equity ratio (DER) and profitability as measured by return on assets (ROA) on share price (closing price). This type of research uses quantitative research. The sample was taken using a purposive sampling method, namely 41 samples from 47 banking sectors listed on the Indonesia Stock Exchange in 2022. The secondary data source used came from the IDX.co.id website. The analysis was carried out using the multiple linear regression method using IBM SPSS version 25 software. The research results show that simultaneously capital structure (DER) and profitability (ROA) have a significant effect on stock prices. However, partial test results show different effects, capital structure (DER) does not have a significant effect on stock prices, while profitability (ROA) has a significant effect on stock prices.

Pengaruh Faktor – Faktor Fundamental Keuangan Terhadap Harga Saham Pada Industri Keuangan Sub Sektor Perbankan Bursa Efek Indonesia Tahun 2019 - 2020

Shares are considered to be an indicator of success in managing a banking company because share prices that have increased indicate that the company is in good condition. The closing price is the last price that appears on a company's shares before the stock exchange closes. The aim of this research is to find out how fundamental financial factors influence stock prices in the sub-banking financial industry of the Indonesian Stock Exchange. Secondary data from audited annual reports on the official IDX website, www.idx.co.id, served as the data source for this research. The research population consisted of financial industry companies in the banking sub-sector from 2019 to 2020. Sample selection was conducted using purposive sampling. Descriptive analytical methods with the SPSS version 25 program were employed for analysis, and hypothesis testing utilized the multiple linear regression method. The findings indicate that Price to Earnings Ratio (PER) and Earnings Per Share (EPS) have a significant influence on stock prices, whereas Return on Equity (ROE) and Net Profit Margin (NPM) do not. However, collectively, NPM, ROE, PER, and EPS as fundamental financial indicators have an impact on stock prices. Keywords: Stock Price, NPM, ROE, PER dan EPS

ACCOUNTING INFORMATION DISCLOSURE: HOW FAR IS SO FAR

Purpose: Accounting information asymmetry increases moral hazard, agency costs, shareholders’ discontent, and further aggravates the discomfort of minority shareholders. As such, how far is so far when connecting information disclosure with firm characteristics has remained a debate. This study thus investigated the nexus between firm characteristics and accounting information disclosure with emphasis on the banking sub-sector in Nigeria. Theoretical Framework: Accounting information disclosure is not hidden from theoretical discussions within the corridors of opportunistic behaviors, agency-theory and information asymmetry or information failure theory Design/Methodology/Approach: Annual reports of eleven top banks in Nigeria were analyzed covering a period of 5 years from 2010 to 2014 using the firm characteristics – size, profitability, age, and international presence. A disclosure checklist consisting 137 voluntary items was developed and multiple regression analysis performed. Findings: The results revealed a positive significant relationship between accounting information disclosure with age, international exposure, and a negative significant relationship was observed for profitability and size. Generally, the level of disclosure in the banking sector was found to be high at 62%. Research, Practical & Social Implications: This study recommends accounting information democratization and sharing to build and restore confidence in banks’ activities and public perception. Originality/Value: The investigation on how far is so far in accounting information disclosure should be perceived from the eye of the stakeholders investments. Be that as it may, it is only fair and ethically moral for persons/groups that have invested in a business and or in a bank to regularly have access to concrete and verifiable mandatory and voluntary information disclosure on the financial position of their hard-earn funds to make reasonable decisions.

Pengaruh Struktur Modal Dan Profitabilitas Terhadap Nilai Perusahaan Pada Perusahaan LQ45 Sub Sektor Perbankan Yang Terdaftar Di Bursa Efek Indonesia

Capital structure and profitability are ratios that influence the value of the company. Specifically, the LQ45 Company in the banking sub-sector which is directly controlled by BUMN is an influential company in Indonesia. This research aims to determine the effect of capital structure with the DER ratio and profitability with the ROE ratio on company value with the PBV ratio in LQ45 companies in the banking sub sector. Researchers used quantitative statistical methods and sample determination using a purposive sampling method. The research sample was four companies with a research period of 10 years. The data used in this research is secondary data. Data analysis used the classical assumption test, multiple linear regression analysis, and hypothesis testing using the t test, F test and coefficient of determination using SPSS version 26. The findings of this study show that although profitability has a positive and large impact on company value, capital structure also has a negative and significant impact on company value. In addition, the combination of capital structure and profitability has a significant impact on company value.

FACTORS AFFECTING PROFITABILITY IN BANKING ENTERPRISES

<p><strong>Background</strong>: Banking companies were chosen as subjects for this study because banking companies experienced an increase in profits along with stronger profitability ratios, so banking companies were considered very prospective for investors.</p><p><strong>Objective</strong>: This study aims to determine the effect of company size, <em>leverage</em>, as well as public share ownership on profitability in banking companies listed on the Indonesia Stock Exchange in 2020 - 2022</p><p><strong>Research Method</strong>: The sampling technique in this study used a <em>purposive sampling </em>technique with a sample of 30 banking companies. This study used linear regression data analysis with the help of SPSS to test the hypothesis, with a descriptive type of research.</p><p><strong>Research Results</strong>: The results of this study show that company size has a <em>positive influence on profitability, while </em>leverage <em>has a </em>negative <em>influence on profitability</em>. On the other hand, public shareholding does not affect profitability.</p><p><strong>Originality/Novelty of Research</strong>: Analyzing the latest regulations regarding free float for companies on the IDX, especially in the banking subsector.</p>

Likuiditas dalam Kinerja Keuangan Subsektor Perbankan

This study aims to examine the effect of liquidity on financial performance with capital adequacy as a moderating variable. This type of research is quantitative with a purposive sampling method and the object of research is companies listed on the Indonesia Stock Exchange during the 2020-2021 period, namely the banking subsector. Data analysis using the SmartPLS 4.0.9.2 method. The results of this study prove that liquidity has no effect on financial performance which is indicated by a value of 0.345, meaning that the significant value is greater than 0.05. The interaction of capital adequacy on the liquidity relationship has no effect on financial performance which is indicated by a value of 0.373, meaning that the significant value is greater than 0.05.

Cross-Border Bank Resolutions and its Challenges

Abstract This article comprehends a very selective analysis of some aspects deemed of extreme relevance to ensure effective cross-border resolution strategies, dealing with global systemically important banks G-SIBS, and also involving financial institutions with no systemic dimension but which operate in multiple jurisdictions. It is discussed, namely, the fact that G-SIBS, as Credit Suisse, and other multi-jurisdictional groups, highlight critical issues of resolution planning when dealing with several jurisdictions. Secondly, this analysis also highlights particular problems in implementing cross-border resolution strategies to be applied to some banking sub-sectors, namely as regards the case study of cooperative banks, which are an important part of the European financial landscape. Thirdly, the article briefly addresses some critical issues of bail-in when dealing with private actors from different jurisdictions. This overall analysis starts from a critical discussion of the financial turmoil of March 2023, debating if this might have affected the relevance and credibility of resolution regimes.

Analysis Of Financial Ratio on The Financial Performance of Banking Companies Before and During the Covid-19 Pandemic Recorded on The Indonesian Stock Exchange in the LQ-45 Index of The Banking Sub-Sector in The Period 2016–2022

Analysis Of Financial Ratio on The Financial Performance of Banking Companies Before and During the Covid-19 Pandemic Recorded on The Indonesian Stock Exchange in the LQ-45 Index of The Banking Sub-Sector in The Period 2016–2022

Internal Audit Function And Independence Of The Board Of Commissioners Towards The Company

As payment for conducting the audit, the auditor will impose audit fees on the entity being audited. A number of variables, such as the task's complexity, the level of skill needed to complete it, the pay scale for knowledge development programs, and other professional considerations, affect the fees that auditors charge to do audits. The purpose of this study is to determine the effects of audit fees for the Indonesia Stock Exchange's banking subsector between 2021 and 2022 on corporate risk, internal audit function, and board of commissioners independence. The study's population comprises firms that have been indexed on the Indonesia Stock Exchange for a certain timeframe, spanning from 2021 to 2022. Purposive selection was used to pick data from 100 banking subsectors that were listed on the Indonesia Stock Exchange for the study sample. In this study, quantitative analysis is used. The Eviews 12 software was used to conduct the analysis. The findings of the partial test indicate that the audit fee is influenced by the risk of the internal audit function and the independence of the board of commissioners, but that company risk and board independence have no effect on the audit fee.

Determinant Earnings Quality and Its Impact on Firm Value

This study aims to examine and analyze the effect of interest rates, inflation, foreign exchange rates and profitability on earnings quality and its impact on firm value. The design of this study used causal research with a population of banking subsector companies listed on the Indonesia Stock Exchange for the period 2018-2022. The sample in this study was 41 companies determined using the purposive sampling method. The data analysis method used is multiple linear regression analysis using E- views version 12. The results of this study show that interest rates, foreign exchange rates, and profitability have a significant negative effect on earnings quality, but inflation has no effect on earnings quality. Interest rates, inflation, foreign exchange rates, earnings quality have no effect on firm value, but profitability has a significant negative effect on firm value, interest rates, inflation, foreign exchange rates, and profitability have no effect on firm value through earnings quality.

DETERMINANTS OF BANKS’ PROFITABILITY – EVIDENCE FROM GO PUBLIC BANKS IN INDONESIA

Bank performance needs to be monitored because of the role of banks as intermediary institutions that collect funds from surplus parties and channel them to deficit parties. This business characteristic makes the banking sector regulated by the government to maintain economic stability and meet the interests of society. Banking performance during 2018-2022 is engaging to study because there is a significant force, namely the COVID-19 pandemic, which impacts economic stability in Indonesia. This research was conducted to obtain empirical evidence of the influence of banking-specific factors and industry-specific factors on banking performance. This research uses quantitative methods by collecting financial reporting data from companies in the banking sub-sector. The banking-specific factors that influence bank performance are capital measured by CAR, liquidity measured by CDR, firm size measured by bank size, asset quality measured by NPL, cash ratio, leverage measured by the DER, management productivity measured by the BPE and the industry-specific factors that influence bank performance, namely GDP, inflation rate and effective tax rate. ROA measures banking performance. Data collection and processing were carried out using IBM SPSS Statistics 25 software. The study's results showed the banking-specific factors that significantly influenced bank performance were CDR, bank size, NPL, DER, and BPE. In contrast, the industry-specific factor was only GDP, which significantly influenced banking performance.

Market Reaction to the Announcement of Rights Issues in Bank Sub-Sector Issuers on the Indonesian Stock Exchange

The TVA metric is used to evaluate the liquidity of a particular stock. Utilizing a technological tool called trading volume activity (TVA) can help monitor capital markets' response to information. The inverse relationship between TVA value and stock liquidity causes this. The TVA value of a stock increases with how easy it is to sell and convert it into currency, or more precisely, how much liquidity a stock has. Because of the announcement right issue, certain phenomena have good impact phenomena, while other phenomena turn out to have bad impacts, and because TVA was not covered in previous research, it is known that the effect of notification light issue on stock returns and market trading volume do not always have the same effect on offering the same conclusions. The research sample consisted of 17 financial services companies in the banking sub-sector that dealt with this issue. The window period in this research was carried out for 11 days, namely 5 days before the announcement right issue, 1 day at the time of the announcement, and 5 days after the announcement right issue. The data used is secondary data obtained from the Indonesian Stock Exchange page and yahoo finance. Data collection techniques are carried out using methods of purposive sampling. Data analysis techniques using one sample t test to find out the market reaction around the announcement right issue and comparative tests to determine differences abnormal return and trading volume activity before and after the announcement right issue. The research results show that there is abnormal return significant surrounding the announcement event rights issue Bank subsector issuers on the IDX in 2021. There is no difference between abnormal returns significantly before and after the announcement of the rights issue. There is a significant difference in stock liquidity before and after the announcement rights issue which is indicated by different trading volume activities.