The Influence of Digital Banking and Good Corporate Governance on Corporate Financial Performance in the General Banking Sector of the Indonesia Stock Exchange (2021-2024) (JURNAL ILMIAH EDUNOMIKA)

Summary

• The study analyzes the effect of Digital Banking and Good Corporate Governance on the financial performance of banks listed on the Indonesia Stock Exchange during 2021–2024.p.1
• The population was 42 conventional commercial banks; purposive sampling gave 35 companies with 140 observations.p.1
• Digital Banking has a positive and significant effect on ROA.p.1
• Good Corporate Governance also has a positive and significant effect on ROA.p.1
• Adjusted R Square is 0.453, so Digital Banking, GCG and Firm Size explain 45.3% of the variation in financial performance, while 54.7% is explained by other factors.p.1

Key insights

1. Financial performance is measured using Return on Assets (ROA), with Firm Size as a control variable.p.1
2. The research uses secondary data from the annual reports and financial statements of banks over the 2021–2024 period.p.1
3. Digital Banking has a positive and significant effect on bank ROA.p.1
4. Good Corporate Governance has a positive and significant effect on bank ROA.p.1
5. The three variables together explain 45.3% of the variation in ROA, leaving 54.7% to other factors outside the model.p.1
6. The final sample comprises 35 banks with 140 company-year observations.p.7