Analysis of Net Profit Margin, Return on Asset, Inflation on CAR and Fintech Firm Value

DOI

10.2991/978-94-6239-709-5_18How to use a DOI?

Keywords

Net Profit Margin; Return On Asset; Inflation; CAR; Firm Value

Abstract

This study explores the relationship between capital adequacy and financial stability within Indonesian fintech companies operating under a dynamic economic environment. The research addresses challenges related to technology development costs and risk management, particularly credit and cybersecurity risks. Investments in digital technology, while essential, can sometimes result in downturns that limit banks’ ability to raise capital and extend credit, thereby affecting economic growth. Accordingly, this study examines the impact of Net Profit Margin (NPM), Return on Assets (ROA), and inflation on the Capital Adequacy Ratio (CAR) and fintech firm value. A quantitative approach was employed using secondary data from audited annual reports of fintech companies listed on the Indonesia Stock Exchange for the period 2019–2023. The data were analyzed using the Smart Partial Least Squares method, incorporating NPM, ROA, inflation, CAR, and fintech firm value as variables. The results indicate that NPM, ROA, and inflation positively influence fintech firm value, and these effects are further strengthened when moderated by CAR. Practically, fintech companies should prioritize both profitability and capital ade-quacy to enhance investor confidence and maintain corporate stability in uncertain economic conditions. This study contributes to the literature by identifying key determinants of capital adequacy and financial stability and offers directions for future research on the long-term effects of regulatory reforms on the profitability and sustainability of Indonesian fintech companies.

Copyright

© 2026 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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TY  - CONF
AU  - Ira Damayanti
PY  - 2026
DA  - 2026/06/20
TI  - Analysis of Net Profit Margin, Return on Asset, Inflation on CAR and Fintech Firm Value
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 243
EP  - 257
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_18
DO  - 10.2991/978-94-6239-709-5_18
ID  - Damayanti2026
ER  -