Purpose - This paper aims to find out what factors will affect the Indonesia conventional banks’ profitability. The concern of doing this paper is based on the report shown by the Banco Bilbao Vizcaya Argentaria’s reports which showed an instability of financial ratio in Indonesia. Research Method - The paper uses the secondary method in collecting information that is used in the paper. The sample for the panel data consists of 95 conventional banks in Indonesia that are listed in the Financial Service Authority of Indonesia (OJK) for the year 2017-2021. The fixed effect model is used for the paper. Findings – Indonesia conventional banks’ profitability are highly impacted by the non-performing loans (measured by non-performing loans over gross loans), operational cost to operational income ratio, bank size, and deposit ratio. These impacts show a negative relationship between the ratios and bank’s profitability. As these ratios increase, the bank’s profit decreases. However, these relationships do not reflect the same way on capital adequacy ratio, loan to deposit ratio, and diversification. These three ratios show an insignificant impact on bank’s profitability. Implication - The paper has shown the impact of each variable to the bank profitability. Keeping bank’s profitability stable is a must for all bank’s top managements responsibility. The findings of the paper could help banks’ top managements to find strategies for the bank to increase those variables which impact positively to the bank profitability and reduces the activities which will cause the banks’ losses.
This study aims to investigate the effect of the characteristics of board of commissioners on bank performance which measured by ROA and PAT in banking companies listed on the Financial Services Authority for period 2017-2021. The characteristics of the board of commissioner consist of the board size, independent commissioner, board of commissioner meeting, and board of commissioner expertise. The population of this study was banking companies listed in the Financial Services Authority in period 2017-2021 with a total sample of 312 data. This study used the panel regression method and showed that the variable board size has a significant positive effect on PAT and does not have a significant effect on ROA. The independent commissioner, board of commissioner meetings, and board of commissioner expertise also have no significant effect on bank performance.
The purpose of this study is to empirically examine the effect of corporate boards and corporate social responsibility on company performance. The sample data used are 52 company names and meet the predetermined characteristics, namely companies that have sustainability reports with the GRI index totaling 91 items and have been listed on the Indonesia Stock Exchange (IDX) for 5 years, from 2017 to 2021. The research method is using the purposive sampling method with SPSS and Eviews 10 application programs. Based on the findings of the observational data, it was found that the diversity of the board of directors and leverage had a significant negative effect on company performance through ROA and EPS measurements. In addition, the size of the board of directors also has a significant negative relationship with company performance through ROE measurement. Then, for other variables such as corporate social responsibility (CSR), company board size, company board independence and company size have the same effect, namely there is no significant effect on company performance.Keywords: Corporate Board, Corporate Social Responbility, Firm Performance
The purpose of this research is to analyze the factors that affect stock price volatility on non-financial companies listed in Indonesia Stock Exchange. The dependent variable studied is the stock price volatility, while independent variables were examined dividend yield, dividend payout ratio, firm size, asset growth, leverage, earning per share, and earning volatility. The secondary data obtained from the annual financial statements and reports of the company’s daily closing share price on the Indonesia Stock Exchange. This study used a sample of 130 companies listed in Indonesia Stock Exchange in the period of 2011-2015. The method used in analyzing the data is multiple regression model. The research data that has been collected will be tested using Eviews 8.0. The result of this study indicate that asset growth has a positive and significant impact on stock price volatility. While leverage and earning per share showed a negative and significant impact on stock price volatility. The result of this study also showed that the dividend yield, dividend payout ratio, and firm size did not have any significant impact on stock price volatility.
The aim of this study is to empirically prove the effect of accrual quality, earnings quality, company size, market to book ratio operating cash flow, debt financing, capital expenditure, net working capital on cash holdings. The research population is non-financial companies listed on the Indonesia Stock Exchange for the 2017-2021 period. Hypothesis testing was carried out using panel regression analysis. The sampling method used in this study was purposive sampling with a total sample of 415 non-financial companies. The results of the study of firm size have a negative effect on cash holdings. market to book ratio, debt financing, net working capital, and operating cash flow have a positive relationship to cash holdings, while accrual quality, earnings quality, and capital expenditure have insignificant results. Keywords: Cash Holding; Firm Size; Earning Quality
The purpose of this research is to analyze the effect of bank specific factors on non-performing loan on public conventional banks. The dependent variable studied was the non-performing loan and independent variables examined were capital adequacy ratio, bank size, loan to deposit ratio, net interest margin, return on equity, operating expenses to operating income, and earning per share. The secondary data obtained from the annual reports submitted in the IDX. Sample consist of 32 public conventional banks listed in IDX in the period of 2012-2017. The result of this study indicate that bank size and net interest margin has a positive and significant impact on non-performing loan. While return on equity showed a negative and significant impact on non-performing loan. The result of this study also showed that capital adequacy ratio, loan to deposit ratio, operating expenses to operating income and earning per share did not have any significant impact on non-performing loan.
The purpose of this research is to examine the social responsibility of earnings management with corporate governance as a moderating variable. Earnings management is measured by using discretionary accrual to check how much earnings management the company has done. Corporate social responsibility uses the GRI G4 index, while corporate governance uses several governance characteristics, namely board size, independent directors, ownership concentration, and institutional ownership to measure their role in regulating the relationship between social responsibility and earnings management. The research sample used 32 non-financial companies listed on the Indonesian Stock Exchange from 2016 to 2020. The research results show that corporate social responsibility has no significant positive impact on earnings management. The board size, institutional ownership, and block holder ownership have no significant impact on the relationship between social responsibility and earnings management. Independent directors as a mediator have a significant positive impact on the relationship between social responsibility and earnings management.
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