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Perdana Wahyu Santosa
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INDONESIA
Research of Finance and Banking
Published by Santoso Academy Network
ISSN : 2987288X     EISSN : 29872871     DOI : https://doi.org/10.58777/rfb
Core Subject : Economy,
Economics, Econometrics & Finance
The Research of Finance and Banking RFB is an open access and peer review journal that publishes theoretical and empirical research articles, review papers, and case studies on all major financial and banking topics. The journals mission is to offer a forum for growing scholarly research on corporate finance, banking, financial institutions, and the money and capital markets in which they operate. The Journal emphasizes theoretical advancements and their application, empirical, practical, and policy oriented research in finance and banking and other local and international financial institutions and markets.
Arjuna Subject : Bisnis, Menejemen, dan Akutansi (semua kategori) - Bisnis, Menejemen, dan Akutansi (Lain-Lain)
Articles 30 Documents
 1   2   3 
Do Earnings, Debt Decisions, Dividends Policy, and Size Affect Firm Value? Evidence from the Property and Real Estate Sector Salsabila, Syahla Aulia; Simon, Zainal Zawir
Research of Finance and Banking Vol. 3 No. 1 (2025): April 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i1.271

Abstract

The objective of this study is to assess the impact of Price Earning Ratio (PER), Debt to Equity Ratio (DER), Dividend Payout Ratio (DPR), and Firm Size on Firm Value in the Property and Real Estate Sector listed on the Indonesia Stock Exchange. The research was conducted on a population of 79 companies with a sample size of 15, using purposive sampling. Secondary data from the Indonesian Stock Exchange website and the companies' websites was utilized for the study. The research employed panel data regression as the method. The findings suggest that PER, DER, and DPR have no significant impact on firm value. In contrast, firm size negatively and significantly affects firm value. When considered together, all independent variables significantly affect firm value. The managerial implications of this research highlight the importance of comprehending the relationship between PER, DER, DPR, and Firm size on Firm value, providing crucial strategic insights for managers to enhance the firm's appeal to investors by demonstrating the potential for higher profit growth.
The Effect of ESG and Green Innovation on the Financial Performance of Listed Firms Ramadhana, Luqman Arief; Effendi, Syahrul
Research of Finance and Banking Vol. 3 No. 1 (2025): April 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i1.357

Abstract

This study examines the impact of Environmental, Social, and Governance (ESG) practices and green innovation on corporate financial performance, measured by Tobin's Q. With sustainability gaining prominence globally and in Indonesia evident in the rise of the ESG Leaders Index there remains limited empirical evidence on its financial implications in the Indonesian context. Using purposive sampling, 19 companies listed in the ESG Leaders Index were analyzed from 2020 to 2022. Results show that ESG practices had a negative but insignificant effect on financial performance, whereas green innovation had a positive and significant impact. Additionally, firm size and leverage were found to significantly influence performance. These findings highlight that while ESG implementation in Indonesia faces obstacles such as high costs and limited integration, green innovation presents a more immediate pathway to financial improvement. For managers, this suggests prioritizing environmentally friendly innovation can boost efficiency, reduce costs, and attract sustainability-minded stakeholders. Meanwhile, ESG practices should be approached with a strategic, long-term mindset to realize their potential value. Sustainability should be embraced not merely as compliance but as a forward-looking investment contributing to long-term profitability.
Exploring Key Determinants of Indonesia Bank Profitability: An In-Depth Analysis Choirunnisa, Choirunnisa; Rahayu, Sovi Ismawati
Research of Finance and Banking Vol. 3 No. 1 (2025): April 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i1.371

Abstract

This study aims to examine the effect of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Operating Costs, Operating Income (BOPO), and Financing to Deposit Ratio (FDR) on bank profitability, measured by Return on Assets (ROA). The research originates from the need to evaluate financial performance indicators that influence profitability, especially in state-owned commercial banks listed on the Indonesia Stock Exchange (IDX). These banks play a pivotal role in Indonesia's financial system, making them critical subjects for analysis. The study uses secondary data sourced from the IDX for the 2018–2020 period and applies purposive sampling to select 7 banks, resulting in 21 data samples. Data analysis involves both partial and simultaneous hypothesis testing. The findings indicate that NPF, BOPO, and FDR have a significant effect on profitability, while CAR does not. Simultaneously, all variables significantly influence ROA. Managerial implications highlight the importance of focusing on operational efficiency, managing asset quality, and optimizing credit distribution to enhance profitability. Understanding these financial ratios enables bank managers to formulate more targeted and effective strategies to improve performance and sustain long-term financial health
Fundamental Factors and Stock Returns: Market Capitalization’s Role in Forming Investment Outcomes Zulfahmi, Iqbal; Subing, Hesty Juni Tambuati
Research of Finance and Banking Vol. 3 No. 1 (2025): April 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i1.410

Abstract

Telecommunication is one type of industry that has a major influence on the smooth running of economic activities. Communication is the main activity in business activities and contributes significantly to the Indonesian economy. In Indonesia, some telecommunications companies have gone public such as PT. Telekomunikasi Indonesia Tbk, PT. Indosat Tbk, PT. XL Axiata Tbk, and PT. Smartfren Telecom Tbk. The shares of these companies have returned to their owners every year with different return values. This finding is the basis for conducting research on the four major telecommunications companies that have large capitalization values and a large market share and, have been established for a long time and are still consistent to this day. The managerial implications of this study indicate that understanding fundamental factors such as profitability, liquidity, and capital structure is very important for company management in increasing stock returns and market capitalization. By optimizing fundamental performance, companies can increase their attractiveness to investors and strengthen their market position. In addition, the role of market capitalization as a moderating variable confirms that companies with large capitalization tend to be more stable in facing market fluctuations.
Growth vs Value: A GARCH-APT Approach to Analyzing IDX Market Indices Sihombing, Pardomuan; Triadji, Iwan
Research of Finance and Banking Vol. 3 No. 1 (2025): April 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i1.426

Abstract

Value and growth investing strategies are often compared in the investment world. This study analyzes the differences in performance of the IDX Value30 and IDX Growth30 indices as a representation of these strategies in Indonesia during the period from January 30, 2014, to September 30, 2022. Measurements were made using the Treynor Ratio, Information Ratio, and stock selection and market timing evaluations through the GARCH (1,1) model. In addition, the APT model was also used to test the influence of macroeconomic factors, such as inflation, IDR/USD exchange rate, and 5-year Government Bond Yield. The comparison of Treynor and Information Ratio was tested using the Mann-Whitney and independent sample t-test. The results show that both indices have positive performance ratios but are not significantly different. Both do not show stock selection capabilities, but IDX Value30 has market timing capabilities. The IDR/USD exchange rate has a negative effect, and the 5-year Government Bond Yield has a positive effect on IDX Value30, while there are no significant macroeconomic factors on IDX Growth30. This research provides a new contribution through a comprehensive analysis of IDX Value30 and IDX Growth30, which can be used as a reference for investment strategies in the Indonesian capital market.
The Power of Interest Coverage and Free Cash Flow in Enhancing Firm Value Rosdiana, Rosdiana; Paramitra, Yuaniko
Research of Finance and Banking Vol. 3 No. 2 (2025): October 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i2.518

Abstract

This research aims to analyze the effects of the interest coverage ratio and free cash flow on the value of PT Indofood CBP Sukses Makmur Tbk. The data are analyzed using multiple linear regression on secondary data in SPSS 16, sourced from the financial reports of PT Indofood CBP Sukses Makmur Tbk for the period 2017–2024. The results of the F-test indicate that both the interest coverage ratio and free cash flow have a significant effect on the firm's value. The t-test results indicate that the Interest Coverage Ratio (ICR) has a significant negative effect on the firm's value. In contrast, Free Cash Flow (FCF) has a significant positive effect. The findings of this study provide important implications for firm management and investors. For management, the results emphasize the need to balance debt repayment capacity with investment in growth-oriented projects to avoid negative market perceptions and sustain long-term firm value. For investors, the findings highlight that Free Cash Flow serves as a strong signal of financial flexibility and growth potential, providing a key indicator for investment decisions in capital-intensive industries such as food and beverages.
Balancing Transparency and Sustainability: Governance as a Moderator Between Carbon Emissions and Firm Value Damayanti, Misvia; Chairunnisa, Nurlaila Maysaroh; Qintarah, Yuha Nadhirah
Research of Finance and Banking Vol. 3 No. 2 (2025): October 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i2.534

Abstract

This study aims to analyze the impact of carbon emission disclosure and annual report readability on firm value, while accounting for governance as a moderating variable. This study used companies in the basic materials sector listed on the Indonesia Stock Exchange (IDX) that published annual reports and sustainability reports, and disclosed information on carbon emissions during 2020-2022. The analysis results show that carbon emission disclosure has a significant positive effect on firm value. Conversely, annual report readability does not significantly affect firm value. Governance is shown to weaken the relationship between carbon emission disclosure and firm value. However, it does not moderate the relationship between annual report readability and firm value. The results of this study can inform the government in encouraging greater carbon emission disclosure in the basic materials industry, as disclosure is currently voluntary. Managerial Implications: The results of this study have important implications for company management in the basic materials sector, calling for greater attention to transparency and environmental communication strategies. Comprehensive carbon emission disclosure has been shown to increase firm value, so managers are advised to expand the scope and quality of carbon emission-related information in sustainability reports.
Can Liquidity, Profitability, and Leverage Predict Financial Distress? Oktrivina, Amelia; Heriansyah, Kurnia; Fryenddisca, Fiona Almyra
Research of Finance and Banking Vol. 3 No. 2 (2025): October 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i2.537

Abstract

This study analyzes the influence of liquidity, profitability, and leverage on financial distress among manufacturing firms in the basic and chemical industry sectors listed on the Indonesia Stock Exchange (IDX) during 2019–2022. Using purposive sampling, 48 firms were selected, producing 192 observations. The results show that liquidity and leverage do not significantly affect financial distress, while profitability has a significant impact. These findings underscore the crucial role of profitability in maintaining financial stability. Managerially, firms should prioritize profitability improvement through operational efficiency, cost control, and revenue diversification to avoid financial distress, especially during economic downturns. Although liquidity and leverage were not significant, maintaining prudent management of both remains essential for long-term resilience. This study’s originality lies in examining the combined effects of liquidity, profitability, and leverage in Indonesia’s post-pandemic basic and chemical manufacturing sectors, using logistic regression as a predictive tool. In contrast to prior research conducted before crises or using single-variable approaches, this study provides new empirical evidence that profitability serves as the key determinant of financial distress under unstable macroeconomic conditions, offering valuable insights for both researchers and industry practitioners.
Good Corporate Governance and Business Scale: Their Impact on Company Financial Performance Rusmaya, Devita Rizki; Rahmah, Mulia; Loen, Mishelei
Research of Finance and Banking Vol. 3 No. 2 (2025): October 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i2.538

Abstract

This study examines the effect of institutional ownership, managerial ownership, and company size on the financial performance of healthcare companies listed on the Indonesia Stock Exchange (IDX) during 2019–2023. Using a quantitative approach with secondary data from the annual reports of 11 selected healthcare firms, the study analyzes how ownership structure and firm scale influence performance. The results show that institutional ownership, managerial ownership, and company size each have a negative impact on financial performance. However, when tested simultaneously, the three variables significantly affect financial performance. These findings suggest that ownership structure and firm size do not necessarily enhance performance, as they may also reflect governance complexities and variations in resource management efficiency. The study implies that healthcare firms should strengthen internal governance and develop more efficient ownership policies to ensure sustainable value creation. The originality of this research lies in its focus on Indonesia’s healthcare sector during the post-pandemic recovery period, an area seldom explored in prior studies particularly those combining ownership structure and firm size in a sector shaped by regulatory dynamics and service-based operational characteristics.
Predicting Non-Life Insurers’ Financial Distress: Evidence from Bangladesh Palas, Md. Jahir Uddin; Majumder, Benazir Imam
Research of Finance and Banking Vol. 3 No. 2 (2025): October 2025
Publisher : SAN Scientific

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58777/rfb.v3i2.546

Abstract

This study aims to develop an interpretable early-warning framework to predict financial distress among non-life insurers in Bangladesh. The research addresses the question of which financial and operational indicators most accurately signal early signs of distress in the insurance sector. Using a firm-year panel covering 2014–2024, the study applies penalized logistic regression, random forests, and gradient-boosted trees, combined with class-balancing remedies and SHAP-based interpretability techniques, to identify the key determinants of insurer distress. The results show that gradient-boosted trees achieve the highest out-of-time recall performance. At the same time, SHAP analysis consistently identifies the management expense ratio, lagged underwriting performance, and reinsurance intensity as the most influential predictors. Robust tests across alternative sampling and feature reduction methods confirm the stability of these findings. The study concludes that monitoring expense efficiency, underwriting results, and reinsurance practices provides the most reliable early warning signals of financial distress in thin-premium markets. The originality of this research lies in integrating explainable machine learning with operational financial indicators in a developing-market insurance context, producing a transparent and policy-ready predictive model that balances accuracy and interpretability.

Page 3 of 3 | Total Record : 30

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