Corporate Governance, Financial Performance and Macroeconomics: The Impact on Bank Profitability Information
DOI:
https://doi.org/10.33603/jka.vol7.no2.a2Keywords:
Corporate governance, Financial Performance, Macroeconomics, ProfitabilityAbstract
Banks are institutions with stringent regulations related to corporate governance implementation and the demand for high financial performance. Macroeconomic conditions significantly affect the financial performance, including profitability, of banks. The study focused on Indonesia's four state-owned banks, Bank Tabungan Negara (BBTN), Bank Negara Indonesia (BBNI), Bank Rakyat Indonesia (BBRI), and Bank Mandiri (BMRI). The research sample or saturated sample was the entire population. The 10-year observation period ran from 2011 to 2020. The panel data regression model with a common effect was used to evaluate the data. The data showed that CGPI and LDR had no discernible impact on profitability. While NPL and FOREX had a large negative impact on profitability as evaluated by ROA, CAR, NIM, SIZE, and BIRATE had a significant positive impact. All independent factors simultaneously have a major impact on profitability. All independent factors were able to explain their impact on profitability to a degree of 94.39%, according to adjusted R-squared, while other variables outside the model were responsible for the remaining effects.
References
Abel, S., & le Roux, P. (2016). Determinants of Banking Sector Profitability in Zimbabwe. International Journal of Economics and Financial Issues, 6, 845–854.
Ahmad Azmy, Dea Restiya Anggreini, & Mohammad Hamim. (2019). Effect Of Good Corporate Governance On Company Profitability RE & Property Sector In Indonesia. Jurnal Akuntansi, 23(1), 18–33. https://doi.org/10.24912/ja.v23i1.457. DOI: https://doi.org/10.24912/ja.v23i1.457
Albulescu, C. T. (2015). Banks’ Profitability and Financial Soundness Indicators: A Macro-level Investigation in Emerging Countries. Procedia Economics and Finance, 23, 203–209. https://doi.org/10.1016/S2212-5671(15)00551-1. DOI: https://doi.org/10.1016/S2212-5671(15)00551-1
Almaqtari, F. A., Al-Homaidi, E. A., Tabash, M. I., & Farhan, N. H. (2019). The determinants of profitability of Indian commercial banks: A panel data approach. International Journal of Finance & Economics, 24(1), 168–185. https://doi.org/https://doi.org/10.1002/ijfe.1655. DOI: https://doi.org/10.1002/ijfe.1655
Almazari, A. A. (2014). Impact of Internal Factors on Bank Profitability: Comparative Study between Saudi Arabia and Jordan. Journal of Applied Finance & Banking, 4(1), 1-7.
(1). https://econpapers.repec.org/RePEc:spt:apfiba:v:4:y:2014:i:1:f:4_1_7.
Alper, D., & Anbar, A. (2011). Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey. 2, 139.
Anggriani, D., & Suryaningtias, N. (2017). Pengaruh CAR (Capital Adequacy Ratio) Dan NIM (Net Interest Argin) Terhadap ROA (Return On Asset). Management Studies, 4(1), 11–18.
Anjaeni, R. (2020). Peran BUMN dalam Pemulihan Ekonomi Pasca Pandemi Covid-19. Diperoleh pada tanggal 15 Juli 2023 dari URL: https://nasional.kontan.co.id/news/peran-bumn-dalam-pemulihan-ekonomi-pasca-pandemi-covid-19. DOI: https://doi.org/10.46445/nccet.v1i1.695
Bashir, A.-H. (2003). Determinants of Profitability in Islamic Banks: Some Evidence from the Middle East. Islamic Economic Studies, 11.
Bougatef, K. (2017). Determinants of bank profitability in Tunisia: does corruption matter? Journal of Money Laundering Control, 20(1), 70–78. https://doi.org/10.1108/JMLC-10-2015-0044. DOI: https://doi.org/10.1108/JMLC-10-2015-0044
Brigham, E.F., & Houston, J.F. (2014). Essentials of Financial Management (3rd ed.), Cengage Learning.
Budiyono, B. (2017). Factors Affecting Banking Profitability in Indonesia (Studies at Bank BRI, Bank BNI, and Bank BTN). International Journal of Economics, Business and Accounting Research (IJEBAR), 1(01), 1–11. https://doi.org/10.29040/ijebar.v1i01.169. DOI: https://doi.org/10.29040/ijebar.v1i01.169
Chowdhury, M. A. F., & Rasid, M. E. S. M. (2016). Determinants of Performance of Islamic Banks in GCC Countries: Dynamic GMM Approach. In D. S. Mutum, M. M. Butt, & M. Rashid (Eds.), Advances in Islamic Finance, Marketing, and Management (pp. 49–80). Emerald Group Publishing Limited. https://doi.org/10.1108/978-1-78635-899-820161005. DOI: https://doi.org/10.1108/978-1-78635-899-820161005
Dallas, G. (2004). Governance and Risk: Analytical Hand Book for Investors, Managers, Directors, and Stakeholders, Standards and Poor, Governance Service. New York: Mc. Graw Hill.
Dewi, A. S. (2017). Pengaruh CAR, BOPO, NPL, NIM dan LDR Terhadap ROA pada Perusahaan di Sektor Perbankan yang Terdaftar di BEI Periode 2012-2016. Jurnal Pundi, 01(03), 223–236. DOI: https://doi.org/10.31575/jp.v1i3.55
Eisenhardt, K.M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1), 57-74. DOI: https://doi.org/10.5465/amr.1989.4279003
Gul, S., Irshad, F., & Zaman, K. (2011). Factors Affecting Bank Profitability in Pakistan. Romanian Economic Journal, 14, 61–87.
Ilahiyah, M. E., Padilla, M. A. E., & Palupi, D. (2021). Covid-19 dan Dampaknya Terhadap Kinerja Bank BUMN di Indonesia. Esensi: Jurnal Bisnis dan Manajemen, 11(1), 25–40.
Jensen, M. C., & Meckling, W.H. (1976), Theory of the Firm: Managerial Behaviour, Agency Cost, and Ownership Structure. Journal of Financial Economics, 3(4), 305-360. DOI: https://doi.org/10.1016/0304-405X(76)90026-X
Julia & Umar, H. (2021). Determinan Nilai Perusahaan Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Jurnal Akuntansi dan Governance, 2(1), 25-39. DOI: https://doi.org/10.24853/jago.2.1.25-39
Kosmidou, K., & Zopounidis, C. (2008). Measurement of Bank Performance in Greece. 6.
Lavanda, S.A.D., & Meiden, C. (2022). Pengaruh Pengungkapan Tanggung Jawab Sosial dan Tata Kelola Perusahaan Terhadap Kinerja Keuangan. Jurnal Akuntansi dan Governance, 2(2), 94-109. DOI: https://doi.org/10.24853/jago.2.2.94-109
Masood, O., & Ashraf, M. (2012). Bank‐specific and Macroeconomic Profitability Determinants of Islamic Banks. Qualitative Research in Financial Markets, 4(2/3), 255–268. https://doi.org/10.1108/17554171211252565. DOI: https://doi.org/10.1108/17554171211252565
Menicucci, E., & Paolucci, G. (2016). The Determinants of Bank Profitability: Empirical Evidence from European Banking Sector. Journal of Financial Reporting and Accounting, 14(1), 86–115. https://doi.org/10.1108/JFRA-05-2015-0060. DOI: https://doi.org/10.1108/JFRA-05-2015-0060
Negara, I. P. A. A., & Sujana, I. K. (2014). Pengaruh Capital Adequacy Ratio, Penyaluran Kredit dan Non Performing Loan pada Profitabilitas. E-Jurnal Akuntansi; Vol 9 No 2 (2014). https://ojs.unud.ac.id/index.php/Akuntansi/article/view/9071.
Nurlita, A. (2021). Faktor-Faktor Yang Mempengaruhi Profitabilitas Bank BUMN Syariah Di Indonesia Periode 2015-2018. Al-Amwal, 9(2), 110–125. https://doi.org/10.36341/al-amwal.v9i2.168. DOI: https://doi.org/10.36341/al-amwal.v9i2.168
Okoye, L., Olokoyo, F., Okoh, J., Ezeji, F., & Uzohue, R. (2020). Effect of corporate governance on the financial performance of commercial banks in Nigeria. Banks and Bank Systems, 15, 55–69. https://doi.org/10.21511/bbs.15(3).2020.06. DOI: https://doi.org/10.21511/bbs.15(3).2020.06
Oktavianus, C. (2016). Non Performing Loan dan Net Interest Margin Terhadap Profitabilitas Perusahaan Perbankan di Bursa Efek Indonesia. Jurnal Katalogis, 4(6), 1–12.
Olalekan, A., & Adeyinka, S. (2013). Capital Adequacy and Banks’ Profitability: an Empirical Evidence from Nigeria. American International Journal of Contemporary Research, 3, 87–93.
Olalere, O. E., Wan Bin Omar, W. A., & Kamil, S. (2017). Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Nigeria. International Journal of Finance & Banking Studies (2147-4486), 6(1 SE-Articles), 25–38. http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/35. DOI: https://doi.org/10.20525/ijfbs.v6i1.627
Ongore, V. O., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1 SE-Articles), 237–252. https://www.econjournals.com/index.php/ijefi/article/view/334.
Pitasari, D. N., & Baehaki, I. (2020). Kesehatan Keuangan Bank Terhadap Profitabilitas dan Nilai Perusahaan Bank BUMN di BEI 2015-2019. Commodities, Journal of Economic and Business, 1(1 SE-Articles). http://ejournal.ijshs.org/index.php/commo/article/view/58.
Priharta, A. (2017). Pengaruh Corporate Governance terhadap Integritas Laporan Keuangan. JABE (Journal of Applied Business and Economic), 3(4),234-250. https://doi.org/10.30998/jabe.v3i4.1779. DOI: https://doi.org/10.30998/jabe.v3i4.1779
Priharta, A., Darto, D., Gani, N. A., & Jaharuddin, J. (2022). Anteseden Profitabilitas Bank BUMN di Indonesia. Jurnal Ekonomi Manajemen Perbankan, 4(1), 1–9. http://jurnal.usbypkp.ac.id/index.php/jemper/article/view/1047. DOI: https://doi.org/10.32897/jemper.v4i1.1047
Priharta, A., & Rahayu, D. P. (2019). Determinants of Earnings Management and Its Implications on the Integrity of the Financial Statements. KnE Social Sciences, 3(26 SE-Articles). https://doi.org/10.18502/kss.v3i26.5425. DOI: https://doi.org/10.18502/kss.v3i26.5425
Putri, A., & Satrio, B. (2014). Pengaruh CAR, NPL BOPO, LDR dan NIM Terhadap Profitabilitas pada Perbankan. Jurnal Ilmu Dan Riset Manajemen, 8(7), 1–20.
Rahman, M. A. I., & Subagio, S. (2021). The Influence Of Corporate Governance, Capital Structure, and Company Size on the Company’s Financial Performance. Jurnal ManagementKeuangan Publik, 5(02). https://doi.org/10.47191/jefms/v4-i1-04. DOI: https://doi.org/10.31092/jmkp.v5i2.1383
Ross, S.A., (1977). The Determination of Financial Structure: The Incentive-Signalling Approach. The Bell Journal of Economics, 8(1), 23–40. DOI: https://doi.org/10.2307/3003485
Salike, N., & Ao, B. (2018). Determinants of bank’s profitability: role of poor asset quality in Asia. China Finance Review International, 8(2), 216–231. https://doi.org/10.1108/CFRI-10-2016-0118. DOI: https://doi.org/10.1108/CFRI-10-2016-0118
Salisu, A., & Saputri, N. R. (2021). The Influence of Corporate Governance on Companies Profitability with Capital Structure as Intervening. International Research of Economic and Management Education, 1(1), 42–53. https://journal.stebilampung.ac.id/index.php/ireme/article/view/212.
Santoso, B. (2021). Determinan Profitabilitas Bank Badan Usaha Milik Negara di Indonesia. Jurnal Ilmiah Ekonomi Bisnis, 26, 14–29. https://doi.org/10.35760/eb.2021.v26i1.3289. DOI: https://doi.org/10.35760/eb.2021.v26i1.3289
Saona, P. (2016). Intra- and extra-bank determinants of Latin American Banks’ profitability. International Review of Economics & Finance, 45, 197–214. https://doi.org/https://doi.org/10.1016/j.iref.2016.06.004. DOI: https://doi.org/10.1016/j.iref.2016.06.004
Sari, D. A., & Suryono, B. (2016). Pengaruh CAR dan LDR Terhadap ROA. Jurnal Ilmu Dan Riset Akuntansi, 5(8), 1–22.
Setiawan, D. (2021). Kinerja di 2020 Jeblok, Ini Kata Analis Soal Prospek Saham Bank BUMN. Diperoleh pada tanggal 15 Juli 2023 dari URL: https://keuangan.kontan.co.id/news/kinerja-di-2020-jeblok-ini-kata-analis-soal-prospek-saham-bank-bumn.
Setiawan, A., & Hermanto, B. (2017). Comparative Study: Determinant On Banking Profitability Between Buku 4 And Buku 3 Bank In Indonesia. Benefit: Jurnal Manajemen Dan Bisnis; Volume 2 No 1 Juni 2017DO - 10.23917/Benefit.V2i1.2918. https://journals.ums.ac.id/index.php/benefit/article/view/2918. DOI: https://doi.org/10.23917/benefit.v2i1.2918
Singh, A., & Sharma, A. (2016). An empirical analysis of macroeconomic and bank-specific factors affecting liquidity of Indian banks. Future Business Journal, 2, 40–53. https://doi.org/10.1016/j.fbj.2016.01.001. DOI: https://doi.org/10.1016/j.fbj.2016.01.001
Sufian, F., & Habibullah, M. S. (2009). Bank Specific and Macroeconomic Determinants of Bank Profitability: Empirical Evidence from the China Banking Sector. Frontiers of Economics in China, 4(2), 274–291. https://doi.org/10.1007/s11459-009-0016-1. DOI: https://doi.org/10.1007/s11459-009-0016-1
Sunarya, I. W. (2018). The Impact of Internal Performance and Macroeconomic Conditions on Profitability in Indonesian Banking From 2015-2017. Jurnal Manajemen Dan Kewirausahaan; Vol 6, No 2 (2018): December 2018DO - 10.26905/Jmdk.V6i2.2374. https://jurnal.unmer.ac.id/index.php/jmdk/article/view/2374.
Syahwildan, M., & Sutrisno, T. (2020). Pengaruh Nilai Tukar , Ukuran Perusahaan Dan Leverage Keuangan Terhadap Profitabilitas PT . Unilever Indonesia Tbk. Jurnal IKRA-ITH Ekonomika, 3(3), 113–124.
Tenriola, A. (2019). Anteseden Return on Asset (ROA) pada Bank BUMN Indonesia. Bongaya Journal for Research in Management (BJRM), 2(1), 68–78. https://doi.org/10.37888/bjrm.v2i1.158. DOI: https://doi.org/10.37888/bjrm.v2i1.158
Terraza, V. (2015). The Effect of Bank Size on Risk Ratios: Implications of Banks’ Performance. Procedia Economics and Finance, 30, 903–909. https://doi.org/https://doi.org/10.1016/S2212-5671(15)01340-4. DOI: https://doi.org/10.1016/S2212-5671(15)01340-4
Tharu, N. K., & Shrestha, Y. M. (2019). The influence of bank size on profitability: An application of statistics. International Journal of Financial, Accounting, and Management, 1(2), 81–89. https://doi.org/10.35912/ijfam.v1i2.82. DOI: https://doi.org/10.35912/ijfam.v1i2.82
Titawano, G. A., Mas’ud, M., & Mas, N. (2021). Pengaruh Keputusan Pendanaan, Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Moderasi. The 2nd Widyagama National Conference on Economics and Business, 261–272.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Jurnal Kajian Akuntansi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish in this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) License that allows others to share the work with an acknowledgement of the work’s authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
