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Journal : Bisma: Jurnal Bisnis dan Manajemen

BANK LIQUIDITY: THE RELEVANCE OF COMMERCIAL LOAN THEORY IN THE CONTEXT OF INDONESIAN BANKING INSTITUTIONS Nur Anita; Muhammad Khafid; Niswah Baroroh
Bisma: Jurnal Bisnis dan Manajemen Vol. 19 No. 2 (2025)
Publisher : Jurusan Manajemen Fakultas Ekonomi dan Bisnis

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.19184/bisma.v19i2.53763

Abstract

This study investigates the effect of leverage, profitability, and firm size on the liquidity of banking firms listed on the Indonesia Stock Exchange (IDX), with particular attention to the moderating role of firm size. This study uses a quantitative approach. The population of this study is banking companies listed on the Indonesia Stock Exchange from 2020 to 2024. The sampling technique uses purposive sampling, which produces a sample of 235 analysis units. Data collection in this study uses documentation techniques. Data analysis uses panel data regression and moderated regression analysis (MRA). The findings reveal that leverage significantly negatively affects liquidity, supporting the principles of Commercial Loan Theory, which emphasizes maintaining liquidity through short-term, self-liquidating assets. The results demonstrate that firm size significantly enhances liquidity, while profitability shows no significant direct effect. Moreover, firm size moderates the relationship between leverage and liquidity in a positive direction, suggesting that larger banks can better withstand the liquidity risks associated with high leverage. Conversely, firm size negatively moderates the relationship between profitability and liquidity, implying that larger banks may reinvest profits into long-term, less liquid assets. This study contributes to the financial management literature by revisiting the relevance of Commercial Loan Theory in the context of Indonesian banking institutions. By integrating firm size as a moderating variable, the research offers a novel perspective on how internal firm characteristics influence the relationship between financial structure and liquidity. Furthermore, using the quick ratio to measure bank liquidity introduces a conservative and less common approach in banking studies, enriching the methodological diversity in liquidity research.
Co-Authors - Suroso A.A. Ketut Agung Cahyawan W Aan Riana Abdul Kodir Abiprayasa Kawiswara Weko Hartoyo, Abiprayasa Kawiswara Weko Achmad Slamet Ade Dwi Suryani, Ade Dwi Aditya Yulianto, Aditya Agus Aan Adriansyah Agus Kurniawan Agus Wahyudin Agus Yuwono Ahmad Saeroji Alfiyaturrohmah, Rifka Alifia, Desi Amin Pujiati Amin Retnoningsih Amin Yusuf Amirul Arif Anak Agung Gede Sugianthara Andryan Setyadharma Ardik Rahmat Kurniawan, Ardik Rahmat Arief Rohman, Arief Arief Yulianto Asih, Sekar Widi Asti Nuris Soraya, Asti Nuris Aulia, Devika Wasiatul Awalya Awalya, Awalya AYU SURYANI, AYU Azhary, Luqman Bambang Subali Barokah, Slamet Umi Nur Buana, Fita Kartika Buana, Fita Kartika Cahyani, Elisabeth Putri Adilya Candrawati, Melinda Candrawati, Melinda Cordeanita, Yunisha Maria Damayanti, Elok Decky Avrilianda Dewi Liesnoor Setyowati Dewi, Citra Asmara Diah Arumsasi, Diah Dienti, Lulu Sania Djoko Widodo Ellianawati, Ellianawati Eloking Surya Sekar Mahardika, Eloking Surya Sekar Fadri, Nurul Fahkruddin Fahkruddin Fakhruddin Fakhruddin Fani Karina, Fani Faradisa, Atiyah Nima Fariztian, Anies Fariztian, Anies Fathur Rokhman Fitriyani, Ulfi Nihayah Gatot Murti Wibowo Hadromi - Hamdan Tri Atmaja Hanapi Atmaja, Hanapi Hasan Mukhibad Hatmanti, Nety Mawarda Iman Widhiatmoko, Iman Indah Anisykurlillah Indah Fajarini Sri Wahyuningrum, Indah Fajarini Sri Isro Hendar Saputra Januarsi, Dian Jarodi , Odi Jarodi, Odi Karina, Fani Ketut Sudarma Khasanah, Hidayatul Komar, Zaenul Kurniawan, Ardik Rahmat Kwartawaty, Nana Noviada Lestari Sukartiningsih, Lis Lestari, Maharesi Dewi Lestari, Maharesi Dewi Linda Agustina Luluk Masruroh, Luluk Marco Marco Marliyana, Eko Marliyana Marliyana, Eko Marliyana Masturi Masturi Monika, Lucky Tio Monika, Lucky Tio Mufaid, Mufaid Mugiyatun, Mugiyatun MUHAMMAD AGUS SUPRAYUDI Mukhlisin Mukhlisin Mulyaningsih Mulyaningsih Muthmainnah, Fadkhuli Niswah Baroroh Niswatun Hasanah Noventi, Iis Nuni Widiarti Nur Amin, Nur Nur Anita Nurul Azizah Adyastuti Nurul Hidayati Nurul Jannatul Firdausi Pangastuti, Uswatun Pertiwi, Raras Sukma Pertiwi, Raras Sukma Prajanti, Sucihatininingsih Dian Wisika Pramomo, Suwito Eko Prihastomo, Eka Deny Prihastomo, Eka Deny Purnomo, Yanuar Dwi Purnomo, Yanuar Dwi Rejeki, Bernadetta Sri Renaningtyas, Dwi Lestari Ria Aniktia, Ria Riana, Aan Rida Andriyani, Rida Risnawati, Septi Rofik, Ainul Rusdarti - Rusdianingseh, Rusdianingseh Rustono Rustono S Martono S.Pd. M Kes I Ketut Sudiana . Safitri, Novia Faiz Sari, Naomi Puspita Sari, Syanita Septiana, Milla Shanty Oktavilia Sheila Erdi El-Majid Shobach, Nurus Sigit Kristiadi, Sigit Siska Puji Lestari Siti Lusiani Siti Nor Chalimah, Siti Nor Slamet Umi Nur Barokah Sonia, Devi SRI WARDANI Sucihatiningsih Dian Wisika Prajanti Sucihatiningsih DWP Suroso, - Suwito Eko Pramono Suyanto Suyanto Totok Sumaryanto Florentinus, Totok Sumaryanto Tri Joko Raharjo Tusyanah Tusyanah Tyas, Vivi Ayuning Umi Hanifah Umi Yamsih, Umi Utama, Pratignya Via, Faricha Putri Alif Widhiatmoko, Iman Widiyanto Widiyanto Widowati Widowati Winoto, Priyo Mukti Pribadi Wulandari, Retno Asih Zaenuri Mastur