Asian Journal of Management, Entrepreneurship and Social Science
Vol. 4 No. 03 (2024): August Asian Journal of Management Entrepreneurship and Social Science ( AJMES

The Impact of Corporate Governance on Capital Structure, Investment Opportunity Set, and Bank Performance: The Role of Credit Risk as a Moderating Variable

Nuraeni Nuraeni (Doctoral Program in Administrative Science, University of Brawijaya)
M. Saifi (Doctoral Program in Administrative Science, University of Brawijaya)
Nila Firdausi Nuzula (Doctoral Program in Administrative Science, University of Brawijaya)
Cacik Rut Damayanti (Doctoral Program in Administrative Science, University of Brawijaya)



Article Info

Publish Date
23 Jul 2024

Abstract

This research aims to examine the influence of corporate governance on capital structure, investment opportunity set and bank performance which is moderated by credit risk. This article attempts to fill the gap in research on the role of credit risk as a moderating variable between the influence of corporate governance on bank performance, the role of credit risk as a moderating variable between the influence of capital structure on bank performance, the role of credit risk as a moderating variable between the influence of investment opportunity set on bank performance in banking companies listed on the Indonesian Stock Exchange. The sampling method used was the judgment sampling technique. From 42 banking companies that had gone public on the Indonesian stock exchange, 20 banking companies were selected as research samples. The secondary data obtained was processed using warpPLS 7.0 software. The research results show that all the hypotheses proposed have a significant effect. Meanwhile, credit risk significantly strengthens the influence of corporate governance on bank performance, and credit risk significantly weakens the influence of capital structure on bank performance, and credit risk significantly strengthens the influence of investment opportunity set on bank performance in banking companies listed on the Indonesian Stock Exchange. The implication is that banking companies listed on the Indonesian Stock Exchange are expected to have bank performance through corporate governance, capital structure and investment opportunity set and be strengthened by credit risk.

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Journal Info

Abbrev

ajmesc

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Asian Journal of Management, Entrepreneurship and Social Science (AJMESC) is a high quality open access peer reviewed research journal. providing a platform for the researchers, academicians, professional, practitioners and students to impart and share knowledge in the form of high quality empirical ...