top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 15 November 2023

Human Capital and Institutional Ownership Roles on Profit Sustainability in Banking

Endang Etty Merawati, Syahril Djaddang, Ari Kristanto, Stella Natasha

Universitas Pancasila

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.06.04.541

Pages: 95-108

Keywords: Human Capital, Institutional Ownership, Corporate Social Responsibility, Independent Commissioner, Profitability

Abstract

Applying the principles of Good Corporate Governance is a major factor in building a solid and reliable corporate fundamentals to achieve sustainable corporate profitability. The aim of this research is to examine the influence of CSR and Independent Commissioners on Profitability which is moderated by Value Added Human Capital and Institutional Ownership. This study uses a quantitative method, where the data source used secondary data taken from the Indonesia Stock Exchange. The contribution of this research is the higher the proportion of independent commissioners, the more independent commissioners will carry out optimal supervision of operational activities. The board of independent commissioners greatly determines the company's success in achieving goals and improving the company's financial performance so that the company's ROA has increased. VAHC can weaken Komi's effect on ROA and is not significant. In principle, appropriate human capital activities can motivate Komi to achieve profitability. Institutional ownership affects company performance because institutional ownership can encourage more optimal supervision and monitoring mechanisms can guarantee shareholder prosperity, so institutional ownership will encourage managers to show good performance in front of shareholders. Institutional Ownership Contribution in moderating the influence of the Committee on ROA.

References

  1. Agatha, B. R., Nurlaela, S., & Samrotun, Y. C. (2020). Kepemilikan Manajerial, Institusional, Dewan Komisaris Independen, Komite Audit dan Kinerja Keuangan Perusahaan Food and Beverage. (Managerial Ownership, Institutional Ownership, Independent Commissioners, Audit Committee and Financial Performance of Food and Beverages Companies) E-Jurnal Akuntansi, 30(7), 1811. https://doi.org/10.24843/eja.2020.v30.i07.p15

  2. Baskoro, P. A., Suratno, S., & Djaddang, S. (2020). Peran intellectual capital terhadap market to book value dan return on assets dengan research and development sebagai pemoderasi (Intellectual Capital Role on Market to Book Value and Return on Asset with Reseach and Development as a Moderator). Journal of Business and Banking, 9(2), 297. https://doi.org/10.14414/jbb.v9i2.2049

  3. Cahyani Prastuti, M., & Budiasih, I. G. A. N. (2019). Pengaruh Corporate Social Responsibility dan Intellectual Capital Pada Kinerja Keuangan (The Effect of Corporate Social Responsibility and Intellectual Capital on Financial Performance).. E-Jurnal Akuntansi, 27, 1365. https://doi.org/10.24843/eja.2019.v27.i02.p20

  4. Dewan Komisioner, & Otoritas Jasa Keuangan. (2021). POJK 17 - 03 - 2021 perubahan dari No 11 2020. OJK. https://ojk.go.id/id/regulasi/Pages/Peraturan-OJK-tentang-Perubahan-Kedua-Atas-POJK-Nomor-11-POJK.03-2020-.aspx (OJK Rule on Board of Directors and Board of Commissioners of Public Companies)

  5. Febiyanti, E., & Hersugondo, H. (2022). Corporate Governance Dan Profitabilitas Perusahaan Publik Di Indonesia. (Corporate Governance and Profitability in Indonesian Public Company) Jurnal Manajemen Dan Keuangan, 11(1), 112–133. https://doi.org/10.33059/jmk.v11i1.5125

  6. Fina Wardah Fitriyah, Anis Wulandari, Y. S. (2023). The Effect of Company Size, Investment Opportunity, Profitability, and Good Corporate Governance on Company Value. PETA, 8(2), 160–171. https://journal.stieken.ac.id/index.php/peta/article/view/734/704

  7. Fuzi, S. F. S., Halim, S. A. A., & Julizaerma, M. K. (2016). Board Independence and Firm Performance. Procedia Economics and Finance, 37(16), 460–465. https://doi.org/10.1016/s2212-5671(16)30152-6

  8. Ho, L. C. J., & Taylor, M. E. (2007). An empirical analysis of triple bottom-line reporting and its determinants: Evidence from the United States and Japan. Journal of International Financial Management and Accounting, 18(2), 123–150. https://doi.org/10.1111/j.1467-646X.2007.01010.x

  9. Komite Nasional Kebijakan Governansi. (2021). Pedoman Umum Governansi Korporat Indonesia (PUGKI) 2021. In Komite Nasional Kebijakan Governansi (General Guideline of Corporate Governance in Indonesia) (p. 37). https://knkg.or.id/wp-content/uploads/2022/06/PUGKI-2021-LORES.pdf

  10. Kristanto, A., & Merawati, E. E. (2022). Determinan Profitabilitas Berkelanjutan Pada Industri Perbankan Dengan Value Added Human Capital Sebagai Pemoderasi (Sustainable Profitability Determinant on banking industry with Value Added Human Capital as a Moderation) . BULLET : Jurnal Multidisiplin Ilmu, 1(6), 1102–1111. https://journal.mediapublikasi.id/index.php/bullet.

  11. Kumalasari, K. P., & Sudarma, M. (2013). A Critical Perspective towards Agency Theory. Jurnal Akuntansi Multiparadigma, 4. https://doi.org/10.18202/jamal.2013.08.7197

  12. Lako, A. (2018). Conceptual Framework of Green Accounting. Accounting, May, 60–66.

  13. Mappadang, A., Wijaya, A. M., & Mappadang, L. J. (2021). Financial performance, company size on the timeliness of financial reporting. Annals of Management and Organization Research, 2(4), 225–235. https://doi.org/10.35912/amor.v2i4.975

  14. Marchyta, N. K., & Anastasia, N. (2021). Journal of Applied Business Administration PERAN INTELLECTUAL CAPITAL DALAM PENGARUH CORPORATE SOCIAL (Role of Intellectual Capital, in Effecting of CSR toward Financial Performance) Jurnal Ekonomi Dan Bisnis, Maret, 10–16. https://jurnal.polibatam.ac.id

  15. Michael C. JENSEN and William H. MECKLING*. (1976). THEORY OF THE FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE. Journal of Financial Economics ., 3, 305–360. https://doi.org/Modern Library, New York, 1937) p. 700.

  16. Musyaffi, A. M., Johari, R. J., Rosnidah, I., Respati, D. K., Wolor, C. W., & Yusuf, M. (2022). Understanding Digital Banking Adoption During Post-Coronavirus Pandemic: An Integration of Technology Readiness and Technology Acceptance Model. TEM Journal, 11(2), 683–694. https://doi.org/10.18421/TEM112-23

  17. Nuryatun, N., & Mulyani, S. D. (2021). The Role Of Independent Commissioners In Moderating The Effect Of Transfer Pricing, Capital Intensity And Profitability Towards Tax Aggressivity. Indonesian Management and Accounting Research, 19(2), 181–204. https://doi.org/10.25105/imar.v19i2.7561

  18. Otoritas Jasa Keuangan. (2022). Taksonomi Hijau Indonesia (Indonesian Green Taxonomy) Otoritas Jasa Keuangan, Edition 1.(2022), 52. https://www.ojk.go.id/keuanganberkelanjutan/Uploads/Content/Regulasi/Regulasi_22012011321251.pdf

  19. Permatasari, M. P., Luh, N., & Setyastrini, P. (2019). Pengungkapan Tanggung Jawab Sosial Perusahaan Ditinjau Dari Teori Legitimasi dan Teori Stakeholder ( Firm Disclosure on Corporate Social Responsibility in the prespective of Legitimation Theory and Stakeholders Theory. Jurnal Akuntansi Dan Perpajakan, 5(1), 1–03. http://jurnal.unmer.ac.id/index.php/ap

  20. Ramadhan, M. A., & Firmansyah, A. (2022). The Supervision Role of Independent Commissioner in Decreasing Risk From Earnings Management and Debt Policy. Accounting Analysis Journal, 11(1), 31–43. https://doi.org/10.15294/aaj.v11i1.58178

  21. Rashid, A. (2018). Board independence and firm performance: Evidence from Bangladesh. Future Business Journal, 4(1), 34–49. https://doi.org/10.1016/j.fbj.2017.11.003

  22. Roswaty. (2023). Analysis of Influence of Independent and Board of Commissioners Managerial Ownership of Return on Assets (ROA) at PT. Adaro Energy Tbk, Period 2016-2020. Islamic Banking : Jurnal Pemikiran Dan Pengembangan Perbankan Syariah, 9(1), 107–124. https://doi.org/10.36908/isbank.v9i1.861

  23. Sofiana, Y., Sukoco, A., & Suyono, J. (2019). The Influence Of Managerial Ownership, Institutional Ownership, And Dividend Policy On The Financial Performance Of Construction And Building Companies Listed On The Indonesia Stock Exchange 2013-2017. IJEBD (International Journal Of Entrepreneurship And Business Development), 3(1), 86–95. https://doi.org/10.29138/ijebd.v3i1.953

  24. Wardhana, L. I., & Tandelilin, E. (2011). Institutional Ownership and Agency Conflict Controlling Mechanism. Journal of Indonesian Economy and Business, 26(3), 389–406. https://www.neliti.com/publications/72661/institutional-ownership-and-agency-conflict-controlling-mechanism

  25. Widarti, R. A., Merawati, E. E., Djaddang, S., & Ahmar, N. (2022). How Gender Diversity Influence Corporate Sustainability Performance: a Literature Review. Accounting Research Journal of Sutaatmadja (ACCRUALS, 06, 84–95. https://doi.org/doi.org/10.35310/accruals.v6i02.921%0Ahttps://ojs.stiesa.ac.id/index.php/accruals/index

  26. Witjaksono, R. B., & Djaddang, S. (2018). Valuasi Kesadaran Lingkungan, Corporate Social Responsibility terhadap Kualitas Laba dengan Moderasi Komite Audit. Jurnal Ekonomi Dan Bisnis, 21(1), 97–114. www.ejournal.uksw.edu/jeb

  27. Yajie Bai, Leilei He, T. Z. (2023). Common institutional ownership and investment efficiency: Empirical evidence from China. Borsa _ Istanbul Review, 23(5), 1067–1077. https://doi.org/10.1016/j.bir.2023.05.006

bottom of page