Factors Affecting The Financial Performance of State-Owned Enterprise Companies Listed on the IDX
DOI:
https://doi.org/10.33506/sl.v13i3.3371Keywords:
CAR, Bank Size, Liquidity, Ownership Composition, Bank PerformanceAbstract
This study aims to identify variables that affect the performance of banking companies listed on the IDX. The addition of the Ownership Composition variable as an independent variable is a novel part of this research. This research method involves collecting data from 22 banking companies over a five year period (2018–2022), and applying data processing analysis using panel data regression analysis techniques. The research results found that the capital adequacy ratio had an effect on Bank Performance. Likewise with the variables Non-performing loans, Liquidity Ratio, Bank Size, Market power, Gross Domestic Product, Inflation rate, and Ownership Composition which influence the performance of banking companies. The implication for financial managers is to choose the best way to utilize assets to achieve business goals, especially to improve shareholder welfare. This research emphasizes how important company performance is for investors when choosing investment opportunities in banking companies.
References
V. C. Q. Ardiansyah, “Pengaruh Financial Leverage, Firm Size Dan Free Cash Flow Terhadap Financial Performance,” Jurnal Paradigma Akuntansi, vol. 2, no. 2, p. 920, 2020, doi: 10.24912/jpa.v2i2.7675.
F. Aboagye-Otchere and P. Y. Boateng, “Financing decision, ownership type and financial performance of listed non-financial companies in Ghana,” Cogent Business and Management, vol. 10, no. 1, 2023, doi: 10.1080/23311975.2023.2170070.
K. Singh, “Performance and returns volatility of banks in India: public versus private sector,” Journal of Economic and Administrative Sciences, 2024, doi: 10.1108/JEAS-07-2023-0181.
M. Akbar, “Analysis of the Effect of Capital Adequacy Ratio (Car), Non-Performing Loan (Npl), and Operating Cost Operating Income (Bopo), Net Interest Margin (Nim) to Loan to Deposit Ratio (Ldr) of State-Owned Banks in Indonesia,” Journal of Social Research, vol. 2, no. 5, pp. 1591–1607, 2023, doi: 10.55324/josr.v2i5.868.
M. K. Mudzakar and I. P. Wardanny, “The Effect Of Return On Asset, Return On Equity, Earning Per Share, And Price Earning Ratio Toward Stock Return (Empirical Study Of Transportation),” Turkish Journal of Computer and Mathematics Education, vol. Vol. 12 No, p. Hal. 387-392, 2021.
H. Draisbach, “Keywords : Net Interest Margin , Term Structure,” vol. 49, no. 0, pp. 0–21, 2022.
V. Aurelia and F. M. Leon, “Factors Affecting Financial Distress in Small and Medium Enterprises (SMEs) in Indonesia: An Empirical Study,” Journal of Economics, Management and Trade, vol. 29, no. 4, pp. 33–46, 2023, doi: 10.9734/jemt/2023/v29i41088.
G. Pinto, S. Rastogi, and B. Agarwal, “Does promoters’ holding influence the liquidity risk of banks?,” Journal of Financial Regulation and Compliance, vol. 32, no. 2, pp. 211–229, 2024, doi: 10.1108/JFRC-09-2023-0144.
F. Debellis, M. Pinelli, M. Hülsbeck, and A. Heider, “Ownership, governance, and internationalization in family firms: a replication and extension,” Small Business Economics, vol. 61, no. 4, pp. 1437–1459, 2023, doi: 10.1007/s11187-023-00736-8.
M. N. Shahid, M. A. Siddiqui, and Z. Shahid, “Impact of Ownership Structure on Firm’s Performance: Evidence from Non-Financial Sector of Pakistan,” Journal of Finance and Accounting, vol. 9, no. 4, pp. 58–66, 2018.
H. Agustin, W. Lestari, and S. Sunarto, “Analisis Kebutuhan Nilai-Nilai Pendidikan Karakter Anak Pada Pelestarian Tari Tanggai Kota Palembang Sumatera Selatan Era Pandemi Covid-19,” Jurnal Sitakara, vol. 7, no. 1, pp. 108–117, 2022, doi: 10.31851/sitakara.v7i1.7473.
H. Asy’ari and L. Dahlia, “School Bullying Pada Siswa Smp Al Fajar Ciputat Tangerang Selatan Banten,” Journal idaroh, vol. 1, no. 1, pp. 1–14, 2015.
T. Permatasari, Sandy Yatty, Pratiwi Caca, Damanik Kanaya, Rukmana Erni, and Silitongan Agnes, “Kebiasan Sarapan, Asupan Zat Gizi Makro dan Status Gizi pada Remaja di Kota Medan,” Jurnal Pendidikan dan Konseling, vol. 4, 2022.
R. Afandi, M., & Erdayani, “Pengantar Teori Pembangunan,” pp. 1–7, 2022.
R. Hidayat, D. P. Sari, and S. Rahayu, “Determinants of capital adequacy ratio in banking industry. ,” Jurnal Keuangan dan Perbankan, vol. 27, no. 1, pp. 45–60, 2023.
H. Kumar, M. K. Singh, M. P. Gupta, and J. Madaan, “Moving towards smart cities: Solutions that lead to the Smart City Transformation Framework,” Technol Forecast Soc Change, vol. 153, 2020, doi: 10.1016/j.techfore.2018.04.024.
J. P. S. Sheefeni, “Determinants of bank liquidity in Namibia.,” European Journal of Business, Economics and Accountancy, vol. 9, no. 7, pp. 39–55, 2018.
P. Bourke, “Concentration and other determinants of bank profitability in Europe, North America and Australia,” J Bank Financ, vol. 13, no. 1, pp. 65–79, 2019.
Asif Pervez, R. V. Naveenan, Ali Hazim Alyamoor, Rohit Bansal, Ankur Gupta, T. Joby Titus, “Impact of capital adequacy and risk on bank performance: An empirical study”, AIP Conf. Proc, vol 2587, no 1, November 2023, doi: 10.1063/5.0150407.
Alnajjar, Adel; Othman, Anwar Hasan Abdullah. “The impact of capital adequacy ratio (CAR) on Islamic banks’ performance in selected MENA countries”, International Journal of Business Ethics and Governance, vol 4, no 4, pp 116-133, 2021, doi: 10.51325/ijbeg.v4i2.70
Ekinci, R., & Poyraz, G. (2019). “The Effect of Credit Risk on Financial Performance of Deposit Banks In Turkey”. Procedia Computer Science, vol 158, pp 979–987, doi:10.1016/j.procs.2019.09.1
Siddique, Asima; Khan, Muhammad Asif; Khan, Zeeshan. “The effect of credit risk management and bank-specific factors on the financial performance of the South Asian commercial banks”. Asian Journal of Accounting Research, vol 7, no 2, pp 182-194, 2022.
Cristian, Eko; Leonarsan, Wirdy; Kim, Sung Suk. “The impacts of competition, efficiency, and risk towards bank’s performance in Indonesia”. Jurnal Keuangan dan Perbankan, vol 24, no 4, pp 407-419, 2020, doi:10.26905/jkdp.v24i4.4903
Akbaş, Halil Emre; Aysan, Ahmet Faruk; Ceyhan, Sanli Pinar. Determinants of bank profitability: An investigation on Turkish banking sector. Öneri Dergisi, vol 10, no 37, pp 103-110, 2012.
Pokharel and Shiva Prasad, “Impact of liquidity on profitability in Nepalese Commercial Bank”, Patan Pragya, vol 5, no 1, pp 180-187, 2019.
Öndeş, Turan; Osman, Asfia Binte. “Is Liquidity An Influencing Factor for Profitability of Banks? An Empirical Study”. IBAD Sosyal Bilimler Dergisi, vol 7, pp 393-402, 2020, doi: 10.32479/ijefi.8304
Minh, S., Et Al, “Does banking market power matter on financial stability?”, Management Science Letters, vol 10, no 2, pp 343-350, 2020, doi: 10.5267/j.msl.2019.8.036.
Grubišić, Zoran; Kamenković, Sandra; Kaličanin, Tijana, “Market power and bank profitability: evidence from Montenegro and Serbia”. Journal of Central Banking Theory and Practice, vol 11, no 1, pp 5-22, 2022, doi: 10.2478/jcbtp-2022-0001.
Aladwan, Mohammad Suleiman, “The impact of bank size on profitability" an empirical study on listed Jordanian commercial banks", European Scientific Journal, vol 11, no 34, 2015
Alfadhli, Mansour S., Alali, Musaed Sulaiman, “The effect of bank size on financial performance: a case study on Kuwaiti Banks”, Journal of Insurance and Financial Management, vol 4, no 3, pp 11-15, 2021.
Sinițîn, Nina; Socol, Adela, “Determinants of banking profitability through ROA and ROE: A panel data approach”, Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, Vol 20, no 1, pp 1037-1043, 2020,
Kohlscheen, Emanuel; Murcia Pabón, Andrés; Contreras, Julieta, “Determinants of bank profitability in emerging markets”, Bank for International Settlements, no 686, 2018.
Almansour, Ammar Yaser, et al, “The effect of inflation on performance: an empirical investigation on the banking sector in Jordan”, The Journal of Asian Finance, Economics and Business, vol 8, no 6, pp 97-102, doi:10.13106/jafeb.2021.vol8.no6.0097
Maria, Minnu Baby; Hussain, Farah, “Does inflation expectation affect banks' performances? Evidence from Indian banking sector”, Journal of Economic and Administrative Sciences, 2023. doi: 10.1108/JEAS-05-2023-0123
Mateev, Miroslav; Sahyouni, Ahmad; Al Masaeid, Turki, “Bank performance before and during the COVID-19 crisis: Does efficiency play a role?”, Review of Managerial Science, vol 18, no 1, pp 29-82, 2024, doi: 10.1007/s11846-022-00611-y
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 SENTRALISASI
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Please find the rights and licenses in Sentralisasi. By submitting the article/manuscript of the article, the author(s) agree with this policy. No specific document sign-off is required.
1. License
The non-commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
2. Author(s)' Warranties
The author warrants that the article is original, written by the stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author, and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User/Public Rights
Sentralisasi's spirit is to disseminate articles published are as free as possible. Under the Creative Commons license, Sentralisasi permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and Sentralisasi on distributing works in the journal and other media of publications. Unless otherwise stated, the authors are public entities as soon as their articles got published.
4. Rights of Authors
Authors retain all their rights to the published works, such as (but not limited to) the following rights;
- Copyright and other proprietary rights relating to the article, such as patent rights,
- The right to use the substance of the article in own future works, including lectures and books,
- The right to reproduce the article for own purposes,
- The right to self-archive the article (please read our deposit policy),
- The right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal (Sentralisasi).
5. Co-Authorship
If the article was jointly prepared by more than one author, any authors submitting the manuscript warrants that he/she has been authorized by all co-authors to be agreed on this copyright and license notice (agreement) on their behalf, and agrees to inform his/her co-authors of the terms of this policy. Sentralisasi will not be held liable for anything that may arise due to the author(s) internal dispute. Sentralisasi will only communicate with the corresponding author.
6. Royalties
Being an open accessed journal and disseminating articles for free under the Creative Commons license term mentioned, author(s) aware that Sentralisasi entitles the author(s) to no royalties or other fees.
7. Miscellaneous
Sentralisasi will publish the article (or have it published) in the journal if the article editorial process is successfully completed. Sentralisasi's editors may modify the article to a style of punctuation, spelling, capitalization, referencing, and usage that deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers as mentioned in point 3.
