FACTORS AFFECTING THE HEALTH OF PUBLIC BANKING COMPANIES IN INDONESIA
1 Denggan Freddy Pangaribuan, 2. Isfenti Sadalia, 3.Nisrul Irawati

Universitas Sumatera Utara

Abstract

The purpose of this study is to find out and analyze the influence of financial factors (Firm Size, Investment Performance, Operating Margin, Price Earning Ratio, Surplus Growth, and Liquidity) on the health of open government banking companies in Indonesia. The population of this study was as many as five open government banking companies in Indonesia, namely PT. BRI Tbk, PT. BMRI Tbk, PT. BNI Tbk, PT. BTN Tbk, and PT. BSI Tbk. Samples were selected using the purposive sampling method totaling five companies with 43 analysis units (2012 - 2021). The data were processed using multiple linear regression tests for the first hypothesis and residual tests for the second hypothesis using the Eviews Application. The results of this study prove that the hypothesis of financial factors (Firm Size, Investment Performance, Operating Margin, Price Earning Ratio, Surplus Growth, and Liquidity) have a significant effect on the financial health of banking companies.

Keywords: Firm Size, Invesment Performance, Operating Margin, Price Earning Ratio, Surplus Growth, dan Liquidity, and Financial Health of Public Banking Companies in Indonesia

Topic: Financial Management and Accounting