Determinants of Bank Performance in Indonesia

Usman, Bahtiar; Lestari, Henny Setyo

doi:10.24252/minds.v6i2.11282

Cited by 6 publications

(6 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The results of this study are in line with previous research which suggests that the CAR ratio does not have a significant impact / influence on banking financial performance as measured by return on assets. (Chandra & Anggraini, 2020;Hasanah & Hariyono, 2022;Rokhayati et al, 2020;Usman & Lestari, 2019;Widyarini & Santoso Marsoem, 2021) As for LDR, the Prob value is 0.2185 or greater than the alpha value of 0.05 so it is obtained that LDR has no significant effect on financial performance (ROA). The analysis results show that liquidity proxied by the LDR ratio has no significant effect on financial performance (ROA) with the observation period 2017 to 2022.…”

Section: Discussionmentioning

confidence: 99%

“…However, there are also research results that find that the CAR ratio has no effect on banking financial performance. (Chandra & Anggraini, 2020;Hasanah & Hariyono, 2022;Rokhayati, Cahyo, & Mulwati, 2020;Usman & Lestari, 2019;Widyarini & Santoso Marsoem, 2021). In addition, there are also research results that show that the CAR ratio has a negative effect on financial performance (Abdurrohman, Fitrianingsih, Salam, & Putri, 2020;Anggraini, Nita Aryani, Budi Prasetyo, & Malang Kucecwara, 2020;Barasa & Hikmah, 2021) Furthermore, to increase profitability, banks make efficiency on the company's operating costs.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Effect of Efficiency, Capital Adequacy and Liquidity on the Financial Performance of Commercial Banks in Indonesia with Foreign Share Ownership as Moderator

Hulu,

Siswanti

2023

TR1010

View full text Add to dashboard Cite

This study aims to determine the effect of efficiency (BOPO), capital adequacy (CAR), and liquidity (LDR) on the financial performance of commercial banks with foreign share ownership as a moderator variable. This research was conducted on commercial banks included in the KBMI 3 and KBMI 4 categories with the research period 2017 -2022. The sampling technique used in this research is saturated sample with a total sample of 13 commercial banks. The results of this study indicate that efficiency (BOPO) has a significant negative effect on financial performance while capital adequacy, liquidity has no effect on financial performance. Furthermore, foreign share ownership is able to moderate the effect of capital adequacy on financial performance but has not been able to moderate the effect of independent variables efficiency and liquidity on the financial performance of KBMI 3 and KBMI 4 category banks.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Effect of Efficiency, Capital Adequacy and Liquidity on the Financial Performance of Commercial Banks in Indonesia with Foreign Share Ownership as Moderator

Hulu,

Siswanti

2023

TR1010

View full text Add to dashboard Cite

show abstract

“…Thus, the non-performing loan ratio is the best measure for measuring asset quality. (Usman & Lestari, 2019). Samad & Anan, 2017.…”

Section: Asset Qualitymentioning

confidence: 99%

Unlocking Sustainability: Exploring the Nexus of Green Banking, Digital Transformation, and Financial Performance with Foreign Ownership Moderation

siswanti,

Riyadh,

Cahaya

et al. 2024

Preprint

View full text Add to dashboard Cite

Banks, as institutions that are profit-oriented and play a role in development and the economy, must also pay attention to environmental and community aspects to maintain sustainability in the long term. Banking and the environment are two different things, even opposites. Banks are commercial entities, whereas the environment is not. Despite their significant differences, these two concepts interact as a sustainable chain, leading to the integration of environmental and social management aspects in financial reports, which are essential for achieving sustainability. McKinsey's 2020 suggests that digital transformation implementation can boost productivity and optimize banking capital and implementing digital transformation will reduce bank operational costs by at least 30 to 40 percent. This will certainly increase the efficiency of the banking sector itself. Therefore, the objective of this research is to empirically test and analysis the effect of green banking, digital transformation, asset quality, on the financial performance of commercial banks with foreign ownership as a moderator, and test and analysis the financial performance on sustainable business for commercial banks. This research conducted on commercial banks that classify bank groups based on core capital 3 and 4, which are listed on the Indonesia Stock Exchange, covering the period from 2017 to 2022. This research employed a saturated sample sampling technique, encompassing a total of forty-seven conventional commercial banks. Panel data regression analysis, a data analysis technique, employs three variables: the dependent variable, the independent variable, and the moderation variable. The research reveals that green banking and digital transformation significantly improve the financial performance of Indonesian commercial banks. In addition, asset quality, as measured by non-performing loans, does not affect performance. Whereas foreign ownership can strengthen the influence of green banking and digital transformation on financial performance, it does not moderate the influence of capital adequacy on financial performance. Finally, high financial performance positively impacts sustainable business, indicating that a bank's sustainability can be positively influenced by its financial performance.

show abstract

“…Financial performance means the company's financial condition in a specific period that is different from the previous condition, where this performance is measured by financial ratios consisting of liquidity, solvency, profitability, activity, and market. Besides, the company's financial performance is a desired and required achievement for each specific timeframe reflecting the health of the company (Usman & Lestari, 2019). This research proxy the performance from the information of return on equity ratio (ROE), because it represents the companies' ability to secure investment opportunities and effective cost management (Fama & French, 1992, 2002Martin, 2017).…”

Section: Financial Performancementioning

confidence: 99%

The Trickle-Down Effect of Intellectual Capital on Banks’ Macro Performance in Indonesia

Wahab¹,

Abbas²,

Syariati³

et al. 2020

JAFEB

View full text Add to dashboard Cite

The stock market serves as a representation of economic well-being in a country. Along with the myriad of economic predictors, specific knowledge possession may lead to different macro consequences of stock performance and market value. This study empirically investigates the capacity of possessing excellent intellectual capital to increase the performance and values of listed banks in Indonesia. The selection of banks as the primary data represents such sectors' capability to attract, employ, or exploit the excellent internal capacity under the discussion of resource-based view theory. At best to the authors' knowledge, this topic's findings are still elusive and debatable upon considering the direct and indirect relationships between the proposed exogenous and endogenous variables. Eighteen listed banks form the panel data throughout 2011-2016. This study employs a path analysis and Sobel test to obtain the results of the proposed hypothesis. The results report some positive relationships of the intellectual capital to firms' performances and values, directly and indirectly, with a substantial effect on the second model compared to the first model. This study highlighted knowledge's capacity as a vital basis to gauge the banks' performance and valuation. However, a better formulation of intellectual capital is required to capture a better measurement.

show abstract

Determinants of Bank Performance in Indonesia

Cited by 6 publications

References 6 publications

The Effect of Efficiency, Capital Adequacy and Liquidity on the Financial Performance of Commercial Banks in Indonesia with Foreign Share Ownership as Moderator

The Effect of Efficiency, Capital Adequacy and Liquidity on the Financial Performance of Commercial Banks in Indonesia with Foreign Share Ownership as Moderator

Unlocking Sustainability: Exploring the Nexus of Green Banking, Digital Transformation, and Financial Performance with Foreign Ownership Moderation

The Trickle-Down Effect of Intellectual Capital on Banks’ Macro Performance in Indonesia

Contact Info

Product

Resources

About