Financial Health and Financial Distress: The Moderating Role of Firm Size in Islamic Banks (2021–2023)
DOI:
https://doi.org/10.54471/iqtishoduna.v14i2.3442Keywords:
RGEC, financial distress, firm size, islamic bankAbstract
The purpose of this study is to use the Risk Profile, Good Corporate Governance, Earnings, and Capital (RGEC) technique to examine the financial health of Indonesian Islamic commercial banks from 2021 to 2023. Firm size is used as a moderating variable for financial distress. Using secondary data from Islamic commercial banks' annual financial reports, the investigation looked at the correlations between the variables using moderation regression methods. The findings indicate that while the Operational Cost to Operational Income Ratio (CIR) has a large favorable impact on financial hardship, the Capital Adequacy Ratio (CAR) has a considerable negative impact. However, as their values are below the table, Non-Performing Financing (NPF), Good Corporate Governance (GCG), Financing to Deposit Ratio (FDR), and Return on Assets (ROA) have no discernible impact. The association between financial hardship and NPF, GCG, and ROA is moderated by firm size, but not by other factors. The model well describes the variability of financial hardship, as evidenced by the determination coefficient of 91.6%. This study highlights the importance of firm size in mitigating financial distress and offers insights for regulators and bank management to enhance financial performance and reduce financial distress risks.
Downloads
References
Abdullah, Faizzal, and Maylia Pramono Sari Sari. “Pengaruh Leverage, Likuiditas, dan Profitabilitas terhadap Financial Distress dengan Ukuran Perusahaan sebagai Variabel Moderasi pada Perusahaan Subsektor Transportasi yang Terdaftar di Bursa Efek Indonesia.” Business and Accounting Education Journal 5, no. 1 (2024): 108–130. https://doi.org/10.15294/baej.v5i1.3509.
Al-Khatib, Hazem B., and Alaa Al-Horani. “Predicting Financial Distress of Public Companies Listed in Amman Stock Exchange.” European Scientific Journal 8, no. 15 (2020).
Alvidianita, Ayu, and Lucky Rachmawati. “Pengaruh RGEC terhadap Financial Distress pada Bank Muamalat Indonesia.” Jurnal Ekonomi Islam 2, no. 2 (2021): 97–109.
Ardyanfitri, Helmina, Muhammad Iqbal Surya Pratikto, and Enha Arini Khusnul Faizah. “Analisis Kesehatan Bank dan Potensi Financial Distress Menggunakan Metode RGEC pada Bank BTPN Syariah Tahun 2014–2018.” Jurnal MEBIS (Manajemen dan Bisnis) 4, no. 2 (2020): 131–141. https://doi.org/10.33005/mebis.v4i2.63.
Efrinal, and Afia Hilda Chandra. “Akrual Jurnal Akuntansi dan Keuangan.” Jurnal Akuntansi dan Keuangan 2, no. 2 (2020): 135–148.
Ghozali, Imam. Aplikasi Analisis Multivariete dengan Program IBM SPSS 23. Semarang: Badan Penerbit Universitas Diponegoro, 2016.
Gultom, Selfi Afriani, and Saparuddin Siregar. “Penilaian Kesehatan Bank Syariah di Indonesia dengan Metode RGEC.” Jurnal Ilmiah Ekonomi Islam 8, no. 1 (2022): 315–327. https://doi.org/10.29040/jiei.v8i1.4593.
Hadiani, Fatmi, and Elva Oktavia Sari. “Non-Performing Financing pada Bank Umum Syariah dengan Faktor Determinan ROA, BOPO, CAR, dan FDR.” Journal of Applied Islamic Economics and Finance 3, no. 2 (2023): 266–274. https://doi.org/10.35313/jaief.v3i2.3753.
International Monetary Fund (IMF). World Economic Outlook, April 2020: The Great Lockdown. Washington, DC: International Monetary Fund, 2020. https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020.
Jenny Pratiwi Assaji, and Zaky Machmuddah. “Rasio Keuangan dan Prediksi Financial Distress.” Jurnal Penelitian Ekonomi dan Bisnis 2, no. 2 (2021): 58–67.
Kusumaningrum, Dwi. “Analisis Tingkat Kesehatan Bank dan Potensi Financial Distress Menggunakan Metode RGEC pada Bank Aceh Syariah Tahun 2016–2020.” Moneter: Jurnal Keuangan dan Perbankan 10, no. 1 (2022): 10. https://doi.org/10.32832/moneter.v10i1.6262.
Labita, Media, and Siska Priyandani Yudowati. “Analisis Penilaian Kesehatan Bank Berbasis RGEC terhadap Financial Distress (Studi pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia pada Tahun 2014–2018).” Jurnal Mitra Manajemen 4, no. 8 (2020): 1249–1262. https://doi.org/10.52160/ejmm.v4i8.449.
Lavidya, Viona, and Zulkifli Zulkifli. “The Effect of Return on Assets and Current Ratio on Financial Distress Using the Springate Method in Technology Companies Listed on the Indonesia Stock Exchange in 2019–2021.” Research Trend in Technology and Management 1, no. 3 (2023): 188–195. https://doi.org/10.56442/rttm.v1i3.29.
Li, Zhi Yuan. “Enterprise Financial Distress Prediction Based on Backward Propagation Neural Network: An Empirical Study on the Chinese Listed Equipment Manufacturing Enterprises.” UPB Scientific Bulletin, Series C: Electrical Engineering and Computer Science 77, no. 1 (2020): 27–38.
Muannasa, Aulia, Eliya Najma Muntazeri, and Lilik Rahmawati. “The Influence of NPF, ROA, CAR, and FDR on the Financial Distress of Sharia Banks in Indonesia, Period 2017–2022.” Jurnal BAABU AL-ILMI: Ekonomi dan Perbankan Syariah 8, no. 1 (2023): 33–45. https://doi.org/10.29300/ba.v8i1.11059.
Nur Fauziah, Heftika, Aini Nur Fakhriyah, and Abdurrohman. “Analisis Risiko Operasional Bank Syariah pada Masa Pandemi Covid-19.” Al Intaj: Jurnal Ekonomi dan Perbankan Syariah 6, no. 2 (2020): 38–45.
Nurtjahjo, Fadhila Meithasari, Tita Nursyamsiah, and Mohammad Iqbal Irfany. “Financial Distress Before and During Pandemic Covid-19: Is Islamic Banking in Indonesia Resilience?” Falah: Jurnal Ekonomi Syariah 7, no. 2 (2022): 14–26. https://ejournal.umm.ac.id/index.php/JES/article/view/20115.
Otoritas Jasa Keuangan. “Statistika Perbankan Syariah, Desember 2023.” Sharia Banking Statistic, December 2023, 19–119.
Palagan, Gilang Pandu, and B. Fisher Darto. Analisis Data Statistik Menggunakan SPSS. Yogyakarta: Deepublish, 2018.
Peraturan Bank Indonesia. Peraturan Bank Indonesia Nomor 13/1/PBI/2011 tentang Penilaian Tingkat Kesehatan Bank Umum. Jakarta: Bank Indonesia, 2011.
Peraturan Otoritas Jasa Keuangan. Peraturan Otoritas Jasa Keuangan Nomor 8/POJK.03/2014 tentang Penilaian Tingkat Kesehatan Bank Umum Syariah dan Unit Usaha Syariah. Jakarta: OJK, 2014.
Pratikto, Muhammad Iqbal Surya, and Mohammad Khoiruzi Afiq. “Analisis Tingkat Kesehatan Bank dan Potensi Financial Distress Menggunakan Metode RGEC dan Zmijewski pada Bank BNI Syariah Tahun 2015–2019.” Jurnal Ekonomi Syariah Teori dan Terapan 8, no. 5 (2021): 570–581. https://doi.org/10.20473/vol8iss20215pp570-581.
Priambodo, Dimas, and Adeng Pustikaningsih. “Analisis Perbandingan Model Altman, Springate, Grover, dan Zmijewski dalam Memprediksi Financial Distress pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2012–2015.” Jurnal Profita: Kajian Ilmu Akuntansi 6, no. 4 (2020): 1–10.
Puspitasari, Fransiska Dwi Ratna, Dwi Irawan, and Dhaniel Syam. “Does Corporate Governance Have an Effect on Financial Distress?: Altman Z-Score Approach.” Journal of Multiperspectives on Accounting Literature 1, no. 2 (2023): 87–99. https://doi.org/10.22219/jameela.v1i2.29204.
Putri, Rosydalina. “Pengaruh Rasio Keuangan dalam Memprediksi Financial Distress pada Bank Umum Syariah.” Fidusia: Jurnal Keuangan dan Perbankan 4, no. 2 (2021): 159–172. https://doi.org/10.24127/jf.v4i2.651.
Rizal, Fitra, and Azidni Rofiqo. “Determinants of Sharia Banking Profitability: Empirical Studies in Indonesia 2011–2020.” El Barka: Journal of Islamic Economics and Business 3, no. 1 (2020): 137–161. https://doi.org/10.21154/elbarka.v3i1.2051.
Rosidi, Rosidi, Rizky Aditya Nugraha, and Intan Lifinda Ayuning Putri. “How Islamic Corporate Governance Mitigates Financing Risk in Indonesian Islamic Banking?” Share: Jurnal Ekonomi dan Keuangan Islam 13, no. 2 (2024): 553–577. https://doi.org/10.22373/share.v13i2.21469.
Setiawan, Iwan. “The Impact of Financing Risk on Islamic Banking Performance in Indonesia.” Share: Jurnal Ekonomi dan Keuangan Islam 10, no. 2 (2021): 208–229.
Shalit, Sol S., and Ulaganathan Sankar. “The Measurement of Firm Size.” The Review of Economics and Statistics 59, no. 3 (1977): 290–298.
Sjarief, Lidia, Muhammad Abdul Ghoni, and Muchammad Taufiq Affandi. “The Role of Financial Performance on the Profitability of Indonesian Islamic Banks.” Jurnal Ekonomi & Keuangan Islam (2023): 277–285.
Springate, Gordon L. V. Predicting the Possibility of Failure in a Canadian Firm: A Discriminant Analysis. Vancouver: Simon Fraser University, 1978.
Sugiyono. Metode Penelitian Pendidikan: Pendekatan Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta, 2013.
Sutrisno, Sutrisno, and Agus Widarjono. “Determinants of Capital Buffer in Islamic Banks: The Lesson from Indonesia.” Cogent Business & Management 11, no. 1 (2024): 2331707.
United Nations Conference on Trade and Development (UNCTAD). World Investment Report 2021: Investing in Sustainable Recovery. Geneva: United Nations, 2021. https://unctad.org/system/files/official-document/wir2021_en.pdf.
Widarjono, Agus, and Munrokhim Misanam. “Determinants of Bank Capital in Indonesian Islamic Banks.” Shirkah: Journal of Economics and Business 9, no. 3 (2024): 290–302.
World Trade Organization (WTO). World Trade Statistical Review 2021. Geneva: World Trade Organization, 2020. https://www.wto.org/english/res_e/statis_e/wts2021_e/wts2021_e.pdf.
Zhuang, Qian, and Lianghua Chen. “Dynamic Prediction of Financial Distress Based on Kalman Filtering.” Discrete Dynamics in Nature and Society (2021). https://doi.org/10.1155/2014/370280.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Isna Putri Adilah, R. Melda Maesarach
This work is licensed under a Creative Commons Attribution 4.0 International License.
The journal can be accessed publicly, which means that all content is provided freely accessible without charge to either the user or the institution. Users are allowed to read, download, copy, distribute, print, search, or cite to the full text of the article did not have to ask permission from the publisher or author.
