International Journal of Economics Development Research (IJEDR)

Analysis of the Effect of Company Size, Liquidity, and Capital Structure on Company Value with Profitability as a Mediating Variable in Banks Listed on the Indonesia Stock Exchange in 2021-2023

Thu, 19 Feb 2026 00:00:00 +0000

Company value in the banking context plays a crucial role because it reflects the success and financial health of the company. This indicates the level of trust of shareholders, clients, and financial services authorities in the bank's performance and integrity. With high corporate value, banks can attract investors, maintain liquidity, and better face market challenges. This study aims to analyze the description of company size, liquidity, capital structure, profitability, and corporate value in banks listed on the Indonesia Stock Exchange. In addition, this study examines the effect of company size, liquidity, and capital structure on corporate value and profitability. This study also analyzes the effect of profitability as a mediating variable in the relationship between company size, liquidity, and capital structure on company value in banks listed on the Indonesia Stock Exchange. This study is an explanatory quantitative study. The results show that, descriptively, banks listed on the Indonesia Stock Exchange generally have large company size, relatively safe liquidity levels, varied capital structures, fairly good profitability, and varying company values according to investor perceptions. Empirically, firm size and liquidity have a positive and significant effect on firm value, while capital structure has a negative and significant effect on firm value. Profitability has been shown to have a positive and significant effect on firm value. Furthermore, firm size has a positive and significant effect on profitability, while liquidity has a negative and significant effect on profitability, and capital structure has a negative and significant effect on profitability. The mediation test results show that profitability partially mediates the relationship between company size and company value, but does not mediate the relationship between liquidity and capital structure on company value. The R-square value shows that the independent variables are able to explain 22.8% of profitability and 16.9% of company value, indicating that the explanatory power of the model is in the moderate category.

The Impact of Social Capital on Household Welfare in Indonesia Using the Propensity Score Matching Method

Mohtar Rasyid, Vinda Yulinda — Mon, 09 Mar 2026 00:00:00 +0000

This study aims to analyze the impact of social capital on household welfare in Indonesia. Social capital is considered an important asset that contributes to improving the economic and social welfare of households, but access to and utilization of social capital is not always evenly distributed among different groups in society. This study uses the Propensity Score Matching (PSM) method with the Average Treatment Effect on the Treated (ATT) approach and stratification techniques to estimate the influence of various social capital indicators on household welfare. The estimation results show that social capital has a positive and significant effect on household welfare, particularly through participation in social gatherings, membership in cooperatives, religious activities, neighbourhood security, social gatherings, women's activities, and childcare. However, some forms of social capital that are communal in nature and related to basic services do not show a significant difference in household welfare. These findings confirm that strengthening social capital plays an important role in improving household welfare in Indonesia

Determinants of Financial Performance of Regional Development Banks in Java Island: Evidence from Panel Data 2020-2024

Priska Basariana Panggabean — Sat, 28 Feb 2026 00:00:00 +0000

This study examines the determinants of financial performance, measured by Return on Assets (ROA), among six Regional Development Banks (Bank Pembangunan Daerah/BPD) in Java Island, Indonesia, over the period 2020–2024. The sample comprises Bank DKI, Bank BJB, Bank Banten, Bank Jateng, Bank BPD DIY, and Bank Jatim. Using panel data from audited annual reports and analysed using multiple linear regression in SPSS 29, the study investigates the effects of Net Interest Margin (NIM), Capital Adequacy Ratio (CAR), Loan-to-Deposit Ratio (LDR), and Non-Performing Loan (NPL) on ROA. The study period spans both the COVID-19 pandemic crisis of 2020–2021 and the recovery phase of 2022–2024, providing a comprehensive view of RDBs’ financial dynamics under varying macroeconomic conditions. The findings reveal that NIM has a significant positive effect on ROA, whereas CAR, LDR, and NPL do not have statistically significant individual effects; the full model explains 83.6% of the variance in ROA. These results contribute new empirical insights into the financial behaviour of Indonesian regional development banks during and after an economic crisis, with practical implications for bank management, regional government shareholders, and banking regulators.

Digital Transformation and Customer Growth in Islamic Microfinance

Rufita Laily Suryanti, M.F. Hidayatullah — Wed, 22 Apr 2026 00:00:00 +0000

Digital transformation has become a key strategy for Islamic financial institutions to improve service efficiency, expand reach, and facilitate transaction access for customers. BMT UGT Nusantara Umbulsari Branch, as an Islamic microfinance institution, has also begun implementing digital services through the Mobile UGT application. Although the use of digital services has shown an increase year over year, the level of utilization by customers is still not optimal. This situation indicates a gap between the availability of technology and user adoption. This study aims to examine the digital transformation process at BMT UGT Nusantara Umbulsari Branch, to identify the factors supporting the success of digital transformation at BMT UGT Nusantara Umbulsari Branch, and to assess the impact of digital transformation on increasing the number of customers at BMT UGT Nusantara Umbulsari Branch. The research approach employed is a qualitative approach. The research results indicate that the digital transformation process at BMT UGT Nusantara Umbulsari Branch was carried out in stages through digital strategy planning, the development of technological infrastructure and the Mobile UGT application, outreach to customers, as well as the implementation and optimization of digital services. The success of this digital transformation was supported by several key factors, namely management commitment, technological infrastructure readiness, human resource competence, and outreach and education strategies for customers. Furthermore, digital transformation has had a positive impact on customer growth, as evidenced by an increase in the number of customers, expansion of user segments, higher transaction frequency, and increased fund mobilization and service reach of the BMT.

Impact of Experiential Marketing and Consumer Trust on Purchase Decisions: Evidence from a Smartphone Retail Business

Jenni Ria Zai, Dedy Lazuardi , Widalicin Januarty — Wed, 22 Apr 2026 00:00:00 +0000

The increasing use of mobile phones in Indonesia has intensified competition in the smartphone retail industry and influenced consumer purchasing behavior. Metta Cell Denai Medan, a local smartphone retailer, has experienced a decline in sales in recent years, indicating reduced consumer purchase interest. Preliminary observations suggest that this decline is associated with suboptimal experiential marketing practices and low levels of consumer trust, particularly in terms of service quality, transparency, and transaction convenience. This study aims to examine the influence of experiential marketing and consumer trust on purchase decisions. This research adopts a quantitative approach using survey data collected from 110 consumers, with the sample size determined based on indicator-based estimation techniques. Data were analyzed using multiple linear regression to assess both partial and simultaneous effects of the independent variables on purchase decisions. The findings reveal that experiential marketing and consumer trust each have a positive and significant effect on purchase decisions. Furthermore, both variables jointly contribute to shaping consumer purchasing behavior. These results highlight the importance of creating meaningful customer experiences and building trust as strategic priorities for improving purchase decisions in the smartphone retail sector.