IIJSE
Vol 8 No 2 (2025): Sharia Economics

The Impact of Corporate Governance on Financial Performance of Indonesian Banks

Pratama, Aganeka (Unknown)
Iqbal, Muhamad (Unknown)
Leon, Farah Margaretha (Unknown)



Article Info

Publish Date
05 May 2025

Abstract

This study analyzes the influence of board size, managerial ownership, ownership concentration, firm age, leverage, and firm size on financial performance, measured by Return on Assets (ROA). The research utilizes data from banking sub-industry companies listed on the Indonesia Stock Exchange during the 2019–2024, with 110 samples obtained through purposive sampling techniques. The study employs a quantitative approach using multiple linear regression analysis with Eviews. The findings reveal that board size negatively affects financial performance, while managerial ownership, ownership concentration, company size, leverage, and company age positively influence financial performance. These results suggest that management should focus on factors that enhance financial performance to improve company profitability, while investors can use these insights to identify promising companies for investment. Future research is encouraged to incorporate corporate governance variables, such as audit committee size, and to expand the scope to other sectors and longer study periods.

Copyrights © 2025






Journal Info

Abbrev

iijse

Publisher

Subject

Economics, Econometrics & Finance

Description

The Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) is Sharia Economics Journal published by Sharia Economics Department Institut Pesantren KH. Abdul Chalim, Mojokerto. The Journal focuses on the issues of Sharia Economics, the History of Islamic Economic Thought, Islamic Law, Local ...