THE INFLUENCE OF OPERATIONAL EFFICIENCY, COMPANY SIZE, AND LEVERAGE ON FINANCIAL PERFORMANCE
Keywords:
Bank, Company, Efficiency, Leverage, Size
Abstract
In recent years, banking companies have begun to try to recover. This happened due to the recovery of conditions after the Covid-19 pandemic that occurred. Customer or customer trust is important in the financial performance of banking companies, so it is important to optimize indicators that are deemed capable of optimizing company profits. There are three indicators that are predicted to influence a company's financial performance, namely operational efficiency, company size and leverage. This research aims to determine the influence of operational efficiency, company size and leverage on financial performance in banking companies listed on the Indonesian Stock Exchange for the 2020-2023 period. The novelty of the research in this research is the use of operational efficiency variables to suspect that have a significant effect on company performance. New evidence or new knowledge about the influence of company operational efficiency, especially on banking in Indonesia, is novel in this research because this variable has not been used by previous researchers. Updated financial report data from 2020 to 2023 which has never been used by researchers before. The data analysis method used in this research is multiple regression where time series data from 2020 to 2023 is used and sourced from the Indonesian stock exchange. Based on the research results, operational efficiency influences banking financial performance while company size and leverage have no effect on company performance.References
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Gujarati, D. 2006. Ekonometrika Dasar. Erlangga: Jakarta.
Haryati, R., & Widyarti, E. (2016). Pengaruh Leverage, Size, NPL, BOPO, dan LDR Terhadap Kinerja Keuangan Bank. Diponegoro Journal of Management, 5(3).
Ibhagui, O. W., & Olokoyo, F. O. (2018). Leverage and Firm Performance: New Evidence on The Role of Firm Siza. North American Journal of Economics and Finance, 45, 57-82.
Iskandar, M. Zulhilmi, M. (2021). Pengaruh Likuiditas Dan Ukuran Perusahaan Terhadap Kinerja Keuangan Bank Umum Syariah Di Indonesia. Journal of Sharia Economics. 2 (1).
Jumantari, I. G. P. A. . I. D. M. E. Endiana, and I. G. A. Pramesti. Pengaruh Ukuran Perusahaan , Likuiditas , Leverage , Dan Struktur Modal Terhadap Kinerja Keuangan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018-2020. J. KARMA Karya Ris. Mhs. Akunt. 2 (1), pp. 2407–2415, 2022.
Kansil, D. Sri Murni. Joy Elly Tulung. (2017). Pengaruh Risiko Perbankan Terhadap Kinerja Keuangan Tahun 2013-2015 (Bank Pembangunan Daerah Se-Indonesia). Universitas Sam Ratulangi Manado. Jurnal Vol 5, No 3 Retrieved from https://ejournal.unsrat.ac.id/index.php/emba/article/view
Kusmana, A., & Sumilir. (2019). Banking performance analysis. International Journal of Multicultural and Multireligious Understanding, 6(3), 34–48.
Maharani, DEN. Ekadjaja, A. (2023). The Effect of Financial Ratios and Company Size on Company Financial Performance. International Journal of Application on Economics and Business (IJAEB). 1 (1). pp. 374-381.
Narwal, K. P., & Jindal, S. (2015). The Impact of Corporate Governance on the Profitability : An Empirical Study of Indian Textile Industry. International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264), 3(2), 81–85.
Nazir, A. Azam, M. Khalid, M. U. (2021). Debt Financing and Firm Performance: Empirical Evidence From the Pakistan Stock Exchange. Asian Journal of Accounting Research, 6 (3), pp. 324-334, DOI: 10.1108/AJAR-03-2019-0019.
Nurhadiyati, V. Suryadi, E. (2024). The Influence of Leverage, Managerial Ownership, Liquidity, and Firm Size on Financial Performance in Basic Materials Companies Listed on the Indonesia Stock Exchange. International Journal of Science and Society. 6 (2).
Nurainy, R., Nurcahyo, B., A, S. K., & Sugiharti, B. (2013). Implementation of Good Corporate Governance and Its Impact on Corporate Performance : The Mediation Role of Firm Size ( Empirical Study from Indonesia ). Global Business and Management Research: An International Journal, 5(2 & 3), 91–104.
Prasetyo, D. A., & Darmayanti, N. P. A. (2015). Pengaruh risiko kredit, likuiditas, kecukupan modal, dan efisiensi operasional terhadap profitabilitas pada PT BPD Bali. E-Jurnal Manajemen Unud, 4(9), 2590–2617.
Rahmat. Ruhiyat, E. (2021). Analysis of Capital Ratios, Operational Efficiency, Net Interest, Liquidity and Credit Problematic, Against Profit Ratio. Coopetition. 12 (12). 413-430.
Satrio, A. B. (2022). Corporate governance perception index and firm performance in Indonesia. Media Ekonomi dan Manajemen, 37(2), 226-239.
Siregar, S. (2017). Statistik Parametik Untuk Penelitian Kuantitatif. Bandung: Bumi Askara.
Soares, P. & Yunanto, M. (2018). The effect of NPL, CAR, LDR, OER and NIM to banking return on asset. International Journal of Economics, Commerce and Management, 6(3), 40–55
Surat Edaran Bank Indonesia No.6/ 23/DPNP tanggal 31 Mei 2004
Suryandani, A. (2018). Pengaruh Pertumbuhan perusahaan, Ukuran Perusahaan, Dan Keputusan Investasi Terhadap Nilai Perusahaan Pada Perusahaan Sektor Property dan Real Estate. Business Management Analysis Journal (BMAJ), 1(1), 49–59.
Yilmaz, I., (2021). Sustainability And Financial Performance Relationship: International Evidence. World Journal of Entrepreneurship, Management, and Sustainable Development. 17 (3). pp. 537-549, DOI: 10.1108/WJEMSD-10-2020-0133
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