Reillo Subaktio
Universitas Kartamulia

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The Nexus of Profitability and Leverage on Company Cash Holdings: Case Study of Banking Companies Listed on Indonesia Stock Exchange Reillo Subaktio; Candra Hakiki; Habibah Habibah; Febby Angelina
eCo-Fin Vol. 7 No. 1 (2025): eCo-Fin
Publisher : Komunitas Dosen Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32877/ef.v7i1.2202

Abstract

Cash holding is important for businesses, including those in the banking sector for operational needs and financial health. This study aims to analyse the effect of profitability and leverage on the cash holding of banking companies listed on the Indonesia Stock Exchange. This study aims to analyse the effect of profitability and leverage on the cash holding of banking companies listed on the Indonesia Stock Exchange. This study uses secondary data on banking companies listed on the Indonesia Stock Exchange and the sample of this study was 43 banking companies with an observation period from 2014 to 2017. The research method used statistics analysis a simultaneous test (t-test) with panel data regression analysis. The results of this study indicate that profitability has a positive but insignificant effect on the company's cash holding. However, leverage has a negative but insignificant effect on cash holding. The policymakers should investigate the specific conditions under which leverage impacts cash holding to develop targeted policies. Therefore, policies could encourage companies to prioritize cash holdings over external funding.
IMPLEMENTASI PRINSIP PRUDENTIAL BANKING DALAM PERBANKAN SYARIAH: ANALISIS YURIDIS TERHADAP PENERAPAN PRINSIP KEHATI-HATIAN DALAM MENJAGA STABILITAS DAN KEPERCAYAAN MASYARAKAT Reillo Subaktio; Gallyn Ditya Manggala; Sheny Yulianty
An Nuqud Journal of Islamic Economics Vol 5 No 1 (2026): AN NUQUD
Publisher : LEMBAGA PENELITIAN DAN PENGABDIAN PADA MASYARAKAT

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.51192/annuqud.v5i1.2860

Abstract

The development of the Islamic banking industry in Indonesia has shown a significant increase in line with the increasing public need for financial services based on sharia principles. Despite having different operational characteristics from conventional banking, Islamic banks still face various risks that can affect the health and sustainability of their business. Therefore, the application of prudential banking principle is a fundamental aspect in the implementation of Islamic banking activities. This research aims to analyze the concept, legal basis, implementation, and challenges of applying the prudential principle in Islamic banking in Indonesia. The research method used is normative legal research with legislative, conceptual, and analytical approaches. The results of the study show that the implementation of the prudential principle in Islamic banking is carried out through the implementation of comprehensive risk management, financing feasibility analysis, strengthening good corporate governance, applying the principle of knowing customers, fulfilling capital adequacy, and monitoring of sharia compliance. The application of these principles is not only aimed at protecting public funds, but also to maintain the stability of the national financial system and realize sharia goals in economic activities. However, its implementation still faces various challenges, including increasing financing risks, financial technology developments, limited human resources, and regulatory complexities that must be complied with simultaneously.