Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)

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Navigating Banking Performance: Insights on Capital Structure, NPL, and Good Corporate Governance

Authors
Elvina Christina1, Sufiyati Sufiyati1, *
1Faculty of Economics and Business, Tarumanagara University, Jakarta, Indonesia
*Corresponding author. Email: sufiyati@fe.untar.ac.id
Corresponding Author
Sufiyati Sufiyati
Available Online 22 July 2025.
DOI
10.2991/978-2-38476-446-4_26How to use a DOI?
Keywords
Capital Structure; Non-Performing Loan; Good Corporate Governance; Financial Performance
Abstract

This study aims to examine the effect of capital structure, non-performing loans, and good corporate governance on the financial performance of banking sector companies during the 2021–2023 period. The data for this study were obtained from the Indonesia Stock Exchange (IDX) and processed using multiple linear regression analysis with EViews 12. Purposive sampling was employed as the sampling method, resulting in a total sample of 31 companies. The findings indicate that financial performance is significantly and negatively affected by capital structure, as proxied by the capital adequacy ratio and asset growth. However, the loan-to-deposit ratio as a proxy for capital structure, non-performing loans, and all proxies for good corporate governance were found to have no significant effect on the financial performance of banking institutions. The results of this study are expected to serve as a consideration for practitioners in future planning to assess or enhance the financial performance of banking companies.

Copyright
© 2025 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 Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
22 July 2025
ISBN
978-2-38476-446-4
ISSN
2352-5398
DOI
10.2991/978-2-38476-446-4_26How to use a DOI?
Copyright
© 2025 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  - Elvina Christina
AU  - Sufiyati Sufiyati
PY  - 2025
DA  - 2025/07/22
TI  - Navigating Banking Performance: Insights on Capital Structure, NPL, and Good Corporate Governance
BT  - Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2024)
PB  - Atlantis Press
SP  - 237
EP  - 246
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-446-4_26
DO  - 10.2991/978-2-38476-446-4_26
ID  - Christina2025
ER  -