Articlediamond2024

An assessment of banking sector performance in Indonesia

Asfeni Nurullah · Efva Octavina Donata Gozali · Ruth Samantha Hamzah · Herdan Bakti · Raihandito Khasman · Maura Aviona Maharani

10 citations0/0 files storedInternational Journal of Financial Accounting and Management

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Banking Sector Performance and Management Banking stability, regulation, efficiency Financial Analysis and Corporate Governance

Abstract

Purpose: This study examines the effect of dividend pay-out ratio (DPR), total assets, and asset growth on banking company performance, measured by return on assets (ROA) and net profit margin (NPM). Research methodology: Using purposive sampling, we obtained 67 banking companies as samples, comprising 33 unlisted firms and 34 listed firms on the IDX. This study observed a 9-year period from 2011 to 2019; thus, the total sample comprises 603 firm-year observations. Linear regression analysis was used to analyze the data. Results: The results show that DPR and total assets, namely ROA and NPM, have a significant effect on the performance of banking companies. Asset growth had a significant effect on NPM. However, asset growth has no significant effect on ROA. Limitations: We acknowledge that we solely used a banking corporation in Indonesia. Nevertheless, to demonstrate the bigger picture of the study findings in terms of banking performance, further studies should employ banking corporations in all emerging countries. Contribution: The results enrich the theoretical knowledge about these factors in financial performance, particularly in the Indonesian banking industry. Practical Implications: Corporation management might consider this finding when making decisions regarding dividend ratios, asset size, and asset growth. Further, management needs to pay attention to these factors when planning business strategies and making decisions to achieve higher financial performance. Novelty: To the best of our knowledge, this is the first study to examine the relationship between DPR, total assets, and asset growth to performance that employs samples of the banking industry from listed and unlisted companies on the IDX.

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2021ANALISIS LAPORAN KEUANGAN 2013Kebijakan dividen : teori,empiris dan implikasi 2022Financial statement analysis as a tool for investment decisions and assessment of companies’ performance 2018PENGARUH RETURN ON ASSET, RETURN ON EQUITY, NET PROFIT MARGIN DAN DEBT TO EQUITY RATIO TERHADAP HARGA SAHAM 2015The Influence of Top Management Team Characteristics on BPD Performance 2019Pengaruh Current Ratio, Debt to Asset Ratio dan Total Asset Turnover terhadap Return on Asset pada Perusahaan Otomotif dan Komponennya yang Terdaftar di Bursa Efek Indonesia 2021The effect of corporate governance on financial performance of rural banks in Ghana 2017PENGARUH RETURN ON ASSETS, NET PROFIT MARGIN, DEBT TO EQUITY RATIO, DAN TOTAL ASSETS TURNOVER TERHADAP HARGA SAHAM INDUSTRI OTOMOTIF DAN KOMPONEN YANG TERDAFTAR DI BURSA EFEK INDONESIA

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