Indonesian Financial Review

The Effect of Capital Structure and Audit Committee on Earnings Quality

Dinne Febriane, Syamsul Asmedi — Thu, 08 Oct 2026 00:00:00 +0000

This study examines the effects of capital structure and audit committee on earnings quality in industrial companies listed on the Indonesia Stock Exchange during 2020–2024. Using a quantitative approach and panel data regression with the Random Effects Model, the study analyzes 14 companies with 70 firm-year observations. Earnings quality is measured using a logarithmic transformation, while capital structure is measured by the debt-to-equity ratio and audit committee by the number of members. The results show that capital structure has a positive but insignificant effect on earnings quality (p = 0.0602), while the audit committee has a negative but insignificant effect (p = 0.1812). The simultaneous effect is also insignificant (p = 0.0586). These findings indicate that capital structure and audit committee size alone are insufficient to explain earnings quality.

Determinants of MSME Taxpayer Compliance: Evidence from KPP Pratama Pondok Aren, Indonesia

Silvia Anggraini, Indra Iman Sumantri — Thu, 08 Oct 2026 00:00:00 +0000

This study examines the effects of taxation system modernization, tax calculation methods, tax justice, and tax rate changes on MSME taxpayer compliance at KPP Pratama Pondok Aren, South Tangerang. Questionnaire data from 100 MSME taxpayers were collected through purposive sampling, with Slovin’s formula determining sample size. Data were analyzed using validity, reliability, classical assumption, multiple linear regression, t-, and F-tests. The results show that taxation system modernization positively and significantly affects compliance (? = 0.172; p = 0.038), as do tax rate changes (? = 0.477; p < 0.001). Tax calculation methods (? = 0.088; p = 0.378) and tax justice (? = 0.165; p = 0.090) have positive but insignificant effects. Model is significant (F = 28.017; p < 0.001) and explains 54.1% of compliance variation (R² = 0.541).

Analysis of PT Allo Bank Indonesia’s Financial Soundness Using the RGEC Method: A Case Study of 2019–2024

Chamid Alwi, Intan Sari Budhiarjo — Sun, 18 Oct 2026 00:00:00 +0000

The digital transformation of banking has increased the importance of assessing bank soundness, particularly among digital banks. This study evaluates PT Allo Bank Indonesia Tbk during 2019–2024 using the Risk Profile, Good Corporate Governance (GCG), Earnings, and Capital (RGEC) framework. A descriptive quantitative approach was applied using secondary data from annual reports. Six indicators were examined: Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), GCG rating, Return on Assets (ROA), Net Interest Margin (NIM), and Capital Adequacy Ratio (CAR). NPL declined from 10.16% in 2019 to below 1% during 2021–2024, while LDR peaked at 163.19% in 2022. GCG improved from a rating of 3 to 2, and ROA and CAR strengthened. The composite score rose from 66.67% in 2019 to 86.67% in 2021, then stabilized at 83.33% during 2022–2024. The average was 80.00%, indicating improved bank soundness, although liquidity risk remained a concern.

Fundamental Financial Performance and Stock Prices: Panel Data Evidence from Indonesian State-Owned Conventional Banks

Saksono Budi, Siti Asmonah, Angga Pratama — Sat, 10 Oct 2026 00:00:00 +0000

The research sample comprised four Indonesian state-owned conventional banks listed on the Indonesia Stock Exchange (IDX) during 2016–2024: PT Bank Negara Indonesia Tbk (BBNI), PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Mandiri Tbk (BMRI), and PT Bank Tabungan Negara Tbk (BBTN). Using purposive sampling, the study analyzed 36 balanced panel observations from annual reports and financial statements. Data analysis employed panel data regression with EViews 13, including the Chow, Hausman, and Lagrange Multiplier tests for model selection. The results indicated that Return on Assets (ROA) had a negative but insignificant effect on stock prices (p = 0.2683), whereas Earnings per Share (EPS) had a positive and significant effect (p = 0.0304). Simultaneously, ROA and EPS significantly influenced stock prices (F = 11.8056; p < 0.001), with an adjusted R-squared of 60.69%.