Non-banking Companies Research Articles

Pengaruh Struktur Aktiva, Debt to Assets Ratio, Return on Equity Ratio dan Dividend Payout Ratio Terhadap Price Book Value

This research examines the impact of Asset Structure, Debt to Assets Ratio, Return on Equity, and Dividend Payout Ratio on Price to Book Value. It focuses on non-banking firms listed in the LQ45 Index on the Indonesia Stock Exchange from 2019 to 2023. Utilizing secondary data and purposive sampling, the study analyzed a sample of 16 non-banking companies out of a population of 38. Multiple linear regression analysis was conducted using SPSS version 22. The results show that Debt to Assets Ratio, Return on Equity, and Dividend Payout Ratio affect Price to Book Value, while Asset Structure does not. Asset Structure does not..

Evaluation Of The Implementation Of Otoritas Jasa Kuangan’s Anti-Fraud Strategy In Non-Bank Companies (A Case Study Of PT Medion Farma Jaya)

PT Medion Farma Jaya is the largest animal husbandry company in Indonesia. The fast and continuous growth of PT Medion sees that various cases of fraud have been revealed, which has prompted PT Medion to develop its own anti-fraud strategy based on Copy of the Otoritas Jasa Keuangan’s Regulation of the Republic of Indonesia Number 39/POJK/03/2019 concerning the Implementation of Anti-Fraud Strategies for Commercial Banks. This research aims to determine and evaluate the implementation of anti-fraud strategies published by Bank Indonesia in a non-bank company. This research is a qualitative case study research and is assisted by NVivo 12 software. The data collection technique is through interviews with samples selected using the purposive sampling method and with the company’s documents. The research results show that the anti-fraud strategy published by Bank Indonesia is pretty effective when implemented in non-bank companies with a little modification, but in PT Medion Farma Jaya, it still needs to be improved.

Capital Structure: Capital Buffer, Return On Equity, Capital Adequacy Ratio In Go-Public Banking In Indonesia

Banking companies may be faced with adjustment costs (cost of capital adjustment) to obtain optimal capital ratios. These costs arise when banks increase or obtain new external capital so that capital adjustments can lead to excess or shortage of capital which can have a negative impact and cause banks to be reluctant to react quickly when capital shocks occur. This research explores the most significant factors that influence bank capital policy choices in Indonesia. This study examines the financing choices of 8 banks for the 2013-2022 period using panel data regression analysis techniques with STATA.17. The results of the Random Effect Model Estimation research where bank companies in Indonesia have high leverage support the fact that the nature of bank business is different from non-banking companies. The significant negative relationship of the capital buffer is in line with the too big fail theory, packing order theory and agency theory, as well as the Retrun On Equity and Capital Adequancy Ratio variables which have a significant positive relationship at an accuracy level of 85.01%, so in other words banking companies can use debt to finance the company on the basis of agency or managerial policies and strategies, thereby proposing pecking order theory with the assumption that there is information asymmetry and agency costs that are relevant both in the long term.

Capital Structure: Capital Buffer, Return on Equity, Capital Adequacy Ratio in Go-Public Banking in Indonesia

Banking companies may be faced with adjustment costs (cost of capital adjustment) to obtain optimal capital ratios. These costs arise when banks increase or obtain new external capital so that capital adjustments can lead to excess or shortage of capital which can have a negative impact and cause banks to be reluctant to react quickly when capital shocks occur. This research explores the most significant factors that influence bank capital policy choices in Indonesia. This study examines the financing choices of 8 banks for the 2013-2022 period using panel data regression analysis techniques with STATA.17. The results of the Random Effect Model Estimation research where bank companies in Indonesia have high leverage support the fact that the nature of bank business is different from non-banking companies. The significant negative relationship of the capital buffer is in line with the too big fail theory, packing order theory and agency theory, as well as the Retrun On Equity and Capital Adequancy Ratio variables which have a significant positive relationship at an accuracy level of 85.01%, so in other words banking companies can use debt to finance the company on the basis of agency or managerial policies and strategies, thereby proposing pecking order theory with the assumption that there is information asymmetry and agency costs that are relevant both in the long term.

The effect of Digitalization on Customer Engagement Applied on Microfinance Non-Banking Companies in Egypt

The effect of Digitalization on Customer Engagement Applied on Microfinance Non-Banking Companies in Egypt

Effect of Profitability, Debt and Market Ratios on Stock Return of Non-Bank Kompas 100 Stock

There exist inconsistencies in which financial ratio predicts stock return. This research aims to find empirical evidence of predictive powers of several financial ratios (Return on Equity (ROE), Earnings per Share (EPS), Debt to Equity Ratio (DER), Dividend Yield (DY), and Price/Earnings Ratio (PER)) in predicting Stock Return. Samples used in this study are 8 non-bank companies that are listed in KOMPAS100 stock index from 2009-2020. Results of this study shows ROE and DY is able to predict Stock Return, while EPS, DER, and PER does not show significant predictive ability.

An Empirical Study on Factors Influencing on Dividend Payout in India with Respect to NIFTY 50 Companies

This article examined the factors influencing the dividend payout of Non financing and non-banking companies listed in NIFTY 50 India. Generating profit is one of the key characteristics of the successful firms. So, when these profits are attained firms distribute profits with their shareholders (investor’s) in the form of dividends. So here we are going to see the various factors which are influencing the dividend payout in India’s NIFTY Fifty. This study covers for the tenure of 5 financial years (2018 - 2023). Various theoretical models have been developed by academicians and researchers to empirical examine the impact of factors on dividend payout ratios of different companies, and it is also suggested that managers should use these models while making decision for dividend payments, Grullon et al. (2002).
 So, in this paper we are going to find the various factors influencing the dividend payout, and we are also going to draw the conclusion by using Descriptive Statistics, Correlation, Simple Regression and Panel Data Analysis. Companies with higher ROE tend to exhibit higher dividend payout ratios, underscoring the role of profitability as a strong driver of dividend distribution policies. Conversely, the Debt-to-Equity Ratio (DE Ratio) consistently demonstrates a negative relationship with DP Ratio, implying that companies with higher debt levels relative to equity tend to have lower dividend payout ratios. This emphasizes the impact of financial leverage on dividend decisions, as firms with substantial debt obligations prioritize debt servicing over dividend payments.

The Effect Of Corporate Social Responsibility On Profitability With Leverage As Moderating Variable

Purpose- This study aims to analyze the effect of corporate social responsibility on the profitability of listed banks in Indonesia and analyze leverage as the moderating variable. Design/Methodology/Approach- This research uses data from 14 listed banks in the Indonesia Stock Exchange from 2017-2021. The equations to analyze the influence of corporate social responsibility and some control variables (firm size, capital adequacy ratio, leverage, and inflation) on profitability and the influence of leverage as a moderating variable are estimated using Fixed-Effect panel data regression. Findings- The results of this research show that firm size, capital adequacy ratio, leverage, and rate of inflation variables have a positive influence on profitability. Meanwhile, corporate social responsibility and the moderating effect of leverage do not significantly influence profitability. Research limitations/implications- The research findings are expected to become a reference for the investor and the bank management on the influence of corporate social responsibility on a listed bank's profitability and the effect of leverage as a moderating variable. Originality/value- As an intermediary, banks have different types of leverage than non-bank companies. This study analyzes the impact of corporate social responsibility with leverage as a moderating variable on the profitability of listed banks in the Indonesian Stock Exchange.

THE VALUE RELEVANCE OF THE SUSTAINABILITY REPORTING (SR): EMPIRICAL EVIDENCE ON INDONESIAN


 
 
 
 This study empirically examines the value relevance of sustainability reporting (SR) in explaining the market value of the firm. The sample of this study is all non-bank companies and financial institutions that go public on the Indonesia Stock Exchange which disclose sustainability reporting for the period 2010 - 2020. Based on these conditions, 590 observations were obtained. Hypothesis testing using SPSS. If the SR*EPS (Earning Per Share) interaction and the SR*BVPS (Book Value Per Share) interaction are significantly positive on the market value, then SR has a value relevance in explaining the company's market value. The results show that SR reduces value relevance. This result indirectly proves that the company's financial information can still be used as a basis for decision-making by investors. 
 
 
 

Influence of Stock Application Attributes on Consumer Choice Decision (Case Study of Stockbit Consumer Choice)

The development of stock investment in Indonesia has experienced significant growth from year to year, according to the President Director of KSEI (Indonesia Central Securities Depository), Uriep Budhi Prasetyo said, “The growth of stock investors is one of the benchmarks for the achievement of the Indonesian stock market, growth occurs significantly during the Covid-19 pandemic, this shows that the Indonesian people are increasingly aware of the importance of investment, especially in the stock market. In the current era of digitalization, almost all daily activities can be done online and most of them can be easily accessed via their personal mobile phones. The number of mobile applications for stock investment has tightened competition. Not only securities from bank companies but also from non-bank companies also enliven the competition in this sector. The many alternative choices of course provide flexibility for consumers in choosing which application suits the needs of each consumer. Through this research, the authors aim to determine what factors influence consumer decisions when choosing stock applications. This study will use the choice modeling analysis method by providing 28 scenario-stated preferences resulted from NGENE software in the form of questionnaires to 200 respondents, in each of these questionnaires there are several attributes of stock applications as consideration for consumers in choosing stock applications including application performance, completeness of features, user security and privacy, transaction fees, and application appearance (UI). The results of this questionnaire are processed using the Multinomial Logit (MNL) method which is run using Python-Biogeme. The results of the study show that in general there are 4 attributes that significantly influence consumer decisions in choosing stock applications, including application performance, completeness of features, user security and privacy, and transaction fees. In addition, this research also shows several attributes that are elastic to consumers in certain applications, namely the user security & privacy and transaction fees in the Ajaib application and in the IPOT application is completeness of feature and transaction fees.

The Moderating Role of Customer Education in the relationship between Digitalization and Value Co-Creation: Applied on Microfinance Non-Banking Companies in Egypt

The Moderating Role of Customer Education in the relationship between Digitalization and Value Co-Creation: Applied on Microfinance Non-Banking Companies in Egypt

비은행권 금융회사 대출의 가계연체율 결정요인에 관한 연구

The purpose of this study is to analyze the dynamic interrelationship between household overdue rate of the banking and the non-banking financial companies, the factors of the household’s ability to pay, and the factors of household’s equity capital. We set up the model based on the solvency hypothesis and the equity capital hypothesis to analyze the effect of household overdue rate in banking and non-banking sectors. We identified the dynamic effects between related variables through impulse response analysis and variance decomposition analysis using the VAR model. The result of the analysis is as following. First, the household overdue rate in the banking sector was affected only by the previous one. Because the rate remains very low, the household default risk in the banking sector is very low. Second, the household overdue rate in the non-banking sector was more affected by household consumption than household income. Third, the household overdue rate in the non-banking sector was more affected by changes in house prices in metropolitan area than non-metropolitan area. Forth, the household overdue rate in the non-banking sector was more affected by changes in house prices in single-family house than apartment and multi-units house. According to these research results, it is necessary to stabilize the price control and reduce the burden of the financially vulnerable in terms of managing the risk of household overdue rate of non-banking companies. Furthermore, the government should strengthen integrative financial regulations of non-banking financial companies to manage potential household default risks.

Does Corporate Governance Constrain Earnings Management in an Unstable Economic and Political Environment?

The purpose of this research is to examine the effects of corporate governance structures on earnings management behavior in a weakly governed and politically unstable environment. A panel of data from 35 non-bank companies listed on the Palestine Exchange between 2012 and 2019 was employed. A fixed effects regression model was used to examine the impact of certain board characteristics (board size, board meetings, and audit committee formation) and ownership structures (institutional ownership, foreign ownership, and ownership concentration) on earnings management in the volatile and risky political and economic environment of Palestine. The findings indicate that corporate governance and ownership systems in Palestine appear to be ineffective in constraining earnings management practices. None of the board attributes appear to constrain earnings management practices. However, there is weak evidence to show that ownership concentration has some effect in curbing earnings manipulation. The findings of this study are expected to increase awareness among Palestinian regulators, investors, and other policymakers regarding the role of boards of directors and institutional and foreign shareholders in monitoring Palestinian listed companies to enhance corporate governance and the quality of financial reporting.

Pengaruh Independensi Komite Audit dan Kepemilikan Keluarga terhadap Manajemen Laba di Perusahaan Bursa Efek Indonesia

This study aims to examine how audit committee independence and family ownership affect earnings management. This study was prepared by considering the prevalence of earnings management cases in Indonesian companies. Earnings management is the act of a company manipulating related company profits obtained in one period in order to gain profits. In this study, the audit committee's independence and family ownership are the independent variables, whereas earnings management is the dependent variable. Family ownership also acts as a moderating variable. There are 11 other control variables included in support of the research conducted. The annual reports and financial statements of non-banking companies listed on the Indonesia Stock Exchange were used as secondary data sources for this study. This research uses Multiple Regression Analysis utilizing the SPSS software. According to the study’s findings, audit committee independence has no significant relationship to earnings management, while family ownership is significantly positively correlated with earnings management. Besides that, family ownership is not able to moderate audit committee independence on earnings management. Thus, it may be said that the family ownership structure of companies may influence earnings management practices in Indonesian public non-banking companies.

Survey On Career Interest of Sharia Economic Law Students In The Final Semester

This study aims to map the career interests of Islamic economic law students after graduating from college. Sharia economic law is a unique study program because it combines several major scientific competencies, namely law, economics, and sharia science. The type of research is descriptive qualitative research by distributing questionnaires. Data collection methods include filling out questionnaires, interviews, observations, and documentation. This study indicates that 74% of the samples taken choose to work directly rather than continue their master's studies (S2). The biggest factor influencing career choice is own desire (74%). The first priority that is most in-demand are Islamic financial institutions with 23%, the selected jobs that are the second priority that is most in demand are in non-bank companies 38%. Meanwhile, students who want to continue their studies after graduation tend to choose masters with the same major, namely the master of sharia economic law (16%). The implementation of a law degree for graduates of Islamic Economic Law has a very large advantage for graduates of Islamic Economic Law, but many students choose to work in the field of economics even though the degree obtained is a law degree because there is still a lack of understanding of law compared to law graduates from the law faculty itself.
 Keywords: Career, Sharia Economic Law, Students

Improving customer relations in the banking sector of Ukraine through the development of priority digital banking products and services: Evidence from Poland

The emergence of new players – fintech companies, neobanks and non-banking companies – changes the structure of competition in the banking sector, reduces the profitability of traditional banking activities, and therefore forces banks to look for new sources of income. The paper deals with the issue of improving relations with clients in the banking sector of Ukraine, which is proposed to be implemented through the development of priority digital banking products and services. The study used a survey method using a statistical apparatus of a small unique sample, the degree of representativeness of which was assessed using the Student’s test. Slightly higher, closer to the level that characterizes the significant impact on the client’s perception of the whole complex of digital activities in the case of Polish banks (3.81, with a maximum possible score of 5.0) than Ukrainian banks (3.75), which indicates greater involvement and willingness to accept the digitalization of the people of Poland. Generally, banks in both countries are recommended to use a customer-oriented approach in forming product policy using digital products and services, which should be implemented and developed in practice in specific areas identified during customer surveys.

Prinsip Kehati-Hatian Bagi Bank Umum Dalam Penyerahan Perkerjaan Kepada Perusahaan Lain

In contracting work, there are three groups of people who are interested, namely the company that provides chartering work (the company that provides the charter), the company that accepts the work of chartering (the company that accepts the charter), and workers. The Contracting Company may submit part of the work implementation to the Contracting Recipient Company. This is carried out through a written Contract of Work Agreement. It must contain provisions that guarantee the fulfillment of the rights of workers/laborers in the emerging employment relationship. Since December 9, 2011 Bank Indonesia issued Bank Indonesia Regulation No.13/25/PBI/2011 concerning Prudential Principles for Commercial Banks in Delegating Work to Other Companies, requiring banking companies in Indonesia to follow these rules in drafting Job Contracting Agreements with Another company. This is inseparable from the decision of the Constitutional Court no. 27/PUU-IX/2011 decision dated January 17, 2012. Based on the description above, the author feels interested in researching this problem and intends to put the results of the research into a scientific paper entitled The Effect of Bank Indonesia Regulation No. 13/25/PBI/2011 concerning Prudential Principles for Commercial Banks in Delegating Work to Other Companies with the Decision of the Constitutional Court No. 27/PUU-IX/2011 Related to the Implementation of Part of the Work between Banking Companies and Non-Banking Companies.

From open banking to embedded finance: The essential factors for a successful digital transformation

Consumers’ needs have changed significantly in recent years, and so have their expectations of financial services. Not only does a large part of their life take place online, but digital apps and products are also integrated into everyday situations. Instead of offering isolated products on a website, companies therefore began to address consumers right at their ‘point of need’ — on e-commerce platforms, in apps from mobility service providers or on comparison portals. Banks can adopt this approach by embedding financial services into the products of non-bank companies, thus offering seamless processes and an increased level of convenience to their clients. Open banking is what provides the foundation for this concept of ‘embedded finance’, by allowing third parties to access banking data via technical interfaces — so-called application programming interfaces (APIs). In 2015, Deutsche Bank decided to take advantage of the opportunities offered by open banking. Through an API programme, the bank enables its partners and customers to integrate banking data as well as financial products and services into their own applications and products. Thus, partners can offer financial services to their customers directly at the point of need. The work of Deutsche Bank’s API Program has provided valuable insights into how banks can successfully open up and even take the next steps towards embedded finance. This paper looks at Deutsche Bank’s experience with open banking and the possibilities and opportunities for embedded finance and presents best practice examples for the necessary internal transformation of financial institutions.

Voluntary disclosure-cost of equity nexus and the moderating role of corporate governance: evidence from an extremely politically unstable context

Purpose Higher degree of and commitment to voluntary disclosure (VD) and corporate governance (CG) helps contain information asymmetry, leading to lower cost of equity (Ke). This study provides evidence on the nexus among VD, CG, and Ke from a context characterized by extreme political instability. Design/methodology/approach This study uses all non-bank companies listed with the Palestine Exchange during 2009–2018. The level of VD was estimated by using a checklist of 35 items modified for the context of Palestine. A second checklist with 19 items was used to measure the commitment of the Palestinian companies with CG requirements. Five proxies for Ke were tested: three ex-ante Capital Asset Pricing Model-like proxies and two ex-post realized return proxies. Findings The findings state that the VD negatively impacted Ke. Interaction effect of CG and VD helps reduce the Ke. As such, for firms with better CG, the increase in VD decreases the Ke more than their standalone effect. For control variables, leverage, size and growth of firms exhibited positive impacts on Ke, whereas quality of auditors found a negative connection. Practical implications Managers in similar context, like Palestine, may prefer flexibility of smaller size and adopt conservative growth strategies to cope with adverse events. Firms adopt CG and VD as complementary forces to tackle instability and market expectation. Originality/value Studies connecting VD-CG-Ke nexus from similar context are rare. Results of this study forward that emphasis on disclosure and governance practices will help boost the confidence of the investors, reduce the Ke and create an incentive for more investment.

Digitalization of the Japanese Economy by the Example of the Banking Sector: Current Results, Prospects and Problems

Purpose: the purpose of this study is to examine the current state of Japan's digital transformation, with a focus on the banking sector, analyzing specifc examples, identifying obstacles that hinder the achievement of expected results.Methods: the article is based on the analysis of scientifc and analytical materials devoted to the problem of research, a set of general scientific methods is applied, including comparison, scientifc generalization, analogy, etc.Results: the article presents the main trends and current results of digitalization of Japanese banks, provides examples of projects, identifies problematic areas of the implemented policy. A hypothesis is put forward about the key role of the government in the development of new standards for the organization of work, taking into account the use of innovative technologies. For Japan, digitalization is chosen as a key tool to mitigate the current socio-economic situation. Digitalization is already being implemented in the healthcare sector, agriculture, etc. Another sector at the center of digitalization is the fnancial one. Financial technologies form new markets and products. Non-banking companies penetrate into the areas occupied by classical banks, competing and even displacing them.These processes are observed both in Japan and in other countries of the world, including Russia. Therefore, studying the Japanese experience of integrating digital technologies into the fnancial sector is important. Although Russia is among the leaders in the digitalization of the financial sector, it is difcult for fntech companies to break into the Russian market due to pressure from large classical banks, as well as the lack of trust in fntech companies from the population.Conclusions and Relevance: in contrast to the manufacturing sector, digitalization of non-manufacturing areas is slower in Japan. This is due to a shortage of qualifed personnel, fnancial risks, etc. Today, the priority for fnancial institutions remains to create the basis for the introduction of digitalization and improve management efciency. From the point of view of ensuring the stability of the fnancial system, it is expected that the Bank of Japan, together with the government, will encourage initiatives in the feld of fnancial development.