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STRATEGIC FACTORS OF BANK SUSTAINABILITY: INSIGHTS FOR DEVELOPING COUNTRIES Yanti, Mal Isnaini Sri Mey; Setyo, Riyanto; Indra, Siswanti; sugiyono
Journal of Central Banking Law and Institutions Vol. 4 No. 2 (2025)
Publisher : Bank Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21098/jcli.v4i2.420

Abstract

The banking sector is vital to sustainable development, yet integrating sustainability into banking strategies remains challenging, particularly in developing countries with limited resources. This study systematically reviews key strategic factors driving banking sustainability and the challenges and opportunities specific to emerging markets. The PRISMA protocol collected articles from Scopus and Web of Science (1990–2024), providing 98 content-analysis articles. The findings reveal an increasing focus on banking sustainability after adopting the UN Responsible Banking Principles in 2019. Content analysis identified six main strategic factors: organisational capital, bank specialisation capability, innovative technology capability, market capability, institutional capability, and ESG capability. These insights offer valuable guidance for bankers, policymakers, and researchers in shaping sustainable banking strategies. While limited to literature-based data, this study provides a foundation for future empirical research and context-specific applications.
Determinants of Financial Distress with Institutional Ownership as a Moderating Variable in the Telecommunications Industry in Indonesia Suhardian, Edward; Siswanti , Indra
Enrichment: Journal of Multidisciplinary Research and Development Vol. 3 No. 5 (2025): Enrichment: Journal of Multidisciplinary Research and Development
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/enrichment.v3i4.436

Abstract

Indonesia's telecommunications sector serves as a key catalyst for economic growth and technological advancement in the era of globalization and Industry 4.0, with digital transformation acting as the primary force behind these changes. This study aims to analyze the influence of leverage, profitability, sales growth, and corporate social responsibility on financial distress. Furthermore, this research seeks to evaluate the role of institutional ownership as a moderating variable in affecting the relationship between these factors and financial distress. The method used in this study is Moderated Regression Analysis (MRA) with E-Views 12 software. The population in this study consists of 22 telecommunication companies listed on the Indonesia Stock Exchange during the 2019-2023 period and the sampling technique used is purposive sampling. The results show that leverage, profitability, sales growth has a significant negative effect on financial distress, while corporate social responsibility do not affect financial distress. Institutional ownership can moderate the influence of leverage and sales growth on financial distress but cannot moderate the effect of profitability and corporate social responsibility on financial distress.
Financial Resilience as Mediator in ESG Risk Rating, Leverage and Profitability Toward Firm Value Mulyasari, Rini; Siswanti , Indra
Enrichment: Journal of Multidisciplinary Research and Development Vol. 3 No. 11 (2026): Enrichment: Journal of Multidisciplinary Research and Development
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/enrichment.v3i11.619

Abstract

This study examines the effects of ESG Risk Rating, leverage, and profitability on firm value, and tests whether financial resilience (Economic Value Added/EVA) mediates these relationships among firms in the IDX ESG Leaders index during 2020–2024. The study employs quantitative panel-data regression with purposive sampling and balanced panel observations. Model selection is conducted using Chow, Hausman, and Lagrange Multiplier (LM) tests. Mediation is tested using the Sobel test. ESG Risk Rating, leverage, and profitability significantly affect firm value. ESG Risk Rating and leverage significantly affect EVA, while profitability does not significantly affect EVA. EVA significantly affects firm value. Sobel results confirm that EVA mediates the effects of ESG Risk Rating and leverage on firm value, but does not mediate profitability’s effect on firm value. Financial resilience (EVA) functions as an intervening mechanism for ESG Risk Rating and leverage in explaining firm value in IDX ESG Leaders firms, while profitability influences firm value primarily through direct effects rather than via EVA.