Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)

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The Effect of Financial Soundness on Bank Financial Performance during Covid-19 Pandemic: The Role of Bank Size

Authors
Nur Hania Amilla1, V. Viverita1, *
1Universitas Indonesia, Depok, Indonesia
*Corresponding author. Email: viverita.d@ui.ac.id
Corresponding Author
V. Viverita
Available Online 11 December 2024.
DOI
10.2991/978-94-6463-585-0_17How to use a DOI?
Keywords
Bank Size; Financial Soundness; Financial Performance
Abstract

This study analyzed the moderating role of bank size on the effect of financial soundness on bank financial performance in ASEAN-4 banks during Covid-19 pandemic. The sample used consists of 77 public commercial banks listed on the Indonesia Stock Exchange (BEI), Malaysia Stock Exchange (MYX), Thailand Stock Exchange (SET), and Philippines Stock Exchange (PSE). A panel data regression with the fixed-effect model estimation method is used to analyze the data. Findings of the study indicate a statistically significant negative impact of NPL and BOPO on bank’s Return on Assets (ROA). Conversely, CAR, earnings quality, and a favorable LDR demonstrate a statistically significant positive influence on NIM. Notably, bank size emerges as a moderator, amplifying the positive effect of CAR on ROA while diminishing the impact of LDR on ROA. Similarly, for NIM, size strengthens the negative effect of NPL but weakens the positive effect of LDR on NIM.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
11 December 2024
ISBN
978-94-6463-585-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-585-0_17How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Nur Hania Amilla
AU  - V. Viverita
PY  - 2024
DA  - 2024/12/11
TI  - The Effect of Financial Soundness on Bank Financial Performance during Covid-19 Pandemic: The Role of Bank Size
BT  - Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024)
PB  - Atlantis Press
SP  - 234
EP  - 248
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-585-0_17
DO  - 10.2991/978-94-6463-585-0_17
ID  - Amilla2024
ER  -