Jurnal Ilmiah Akuntansi dan Bisnis

Governance and Financial Performance as Drivers of Bank Profitability in Indonesia

I Kadek Bagiana — 2025-12-09

The purpose of this study is to empirically examine the relationship between the profitability of banking businesses listed on the Indonesia Stock Exchange (IDX) as evaluated by Return on Equity (ROE), and the following variables: Board Gender Diversity (BGD), Net Interest Margin (NIM), Non-Performing Loans (NPL), and Firm Size (SIZE). The 141 observations used in this quantitative study are based on secondary data extracted from the annual reports of 47 different banking businesses for the years 2021–2023. After the data passed the traditional assumption tests, multiple linear regression analysis was used to examine the data. Analyses show that firm size, gender diversity on the board, and net interest margin all positively affect Return on Equity. Return on Equity, on the other hand, is severely impacted by Non-Performing Loans. There was a statistically significant relationship between bank profitability and each of the four independent factors. Management at financial institutions can learn a lot from the results on the strategic value of diverse boards and careful risk management. This study sheds light on the internal variables that matter most to banks' bottom lines, which is useful information for investors. Theoretically, this research adds to what is already known about the relationship between corporate finance and governance by presenting data from a developing economy.

Digital Financial Literacy and Customer Protection on Customer Trust with the Use of Mobile Banking as a Moderating Variable

Siti Nur Aisyah — 2025-12-09

This research examines the effect of digital financial literacy and customer protection on customer trust, with mobile banking serving as a mediating variable. A quantitative approach was employed using a field survey of individuals aged 17 to 44 in Sukabumi who use mobile banking services. From this population, 151 respondents were selected through non-probability sampling focusing on purposive sampling to qualify the mobile banking users. Data were collected via an online questionnaire and analyzed with Smart PLS software. The findings reveal that respondents’ digital financial literacy is categorized as good and has a significant positive influence on both mobile banking usage and customer trust. Moreover, digital financial literacy positively affects customer protection. The results also show that mobile banking usage enhances customer trust, while customer protection contributes positively to mobile banking usage.In addition, the study identifies several mediated relationships: digital financial literacy affects customer trust through mobile banking usage; customer protection influences customer trust through mobile banking usage; and digital financial literacy impacts mobile banking usage through customer protection. Finally, digital financial literacy also shapes customer trust when mediated simultaneously by customer protection and mobile banking usage.

The Influence of Transaction Complexity, Audit Budget, and Auditor Turnover on Misstatement Detection

Ricky Bryan D.P. Tampubolon — 2025-12-09

This study investigated the influence of transaction complexity, audit budget, and auditor turnover on the detection of material misstatements in financial statement audits. Using a quantitative approach with a survey design, data were collected from 158 external auditors working in public accounting firms in Jakarta. Respondents were selected through purposive sampling, requiring at least two years of professional auditing experience. The research instrument was distributed both in-person and online, and all responses were deemed valid for analysis. The results of multiple regression analysis showed that transaction complexity had a negative and significant effect on misstatement detection, indicating that higher transaction complexity reduced auditors’ effectiveness in identifying errors or fraud. Auditor turnover also demonstrated a negative and significant effect, suggesting that frequent changes in audit personnel decreased the continuity of knowledge and reduced the ability to detect misstatements. Conversely, audit budget did not have a significant effect, implying that the allocation of audit resources and time did not directly determine detection effectiveness. Simultaneous testing revealed that transaction complexity, audit budget, and auditor turnover collectively affected misstatement detection, with an explanatory power of 80.5%. These findings highlighted the importance of considering multiple risk factors in audit planning, particularly the challenges posed by complex transactions and frequent personnel turnover. The study contributed to the understanding of audit quality determinants in Indonesia and provided practical implications for audit firms in managing resources and maintaining team stability to enhance misstatement detection.

The Board Independence and Performance Nexus: The Moderating Role of Firm Size

Luh Putri Mas Mirayani — 2025-12-09

This study examines the relationship between board independence and firm performance, emphasizing the moderating role of firm size in Indonesia’s manufacturing sector during 2021-2023. Grounded in Agency Theory, the research investigates how the proportion of independent commissioners affects Return on Assets (ROA) and whether firm size influences this relationship. Using a quantitative causal-associative approach with 177 firm-year observations from 59 listed manufacturing companies on the Indonesia Stock Exchange (IDX), the data were analyzed through Moderated Regression Analysis (MRA) after passing all classical assumption tests. The findings reveal that a higher proportion of independent commissioners significantly improves firm profitability (ROA). However, firm size negatively moderates this relationship, meaning that the positive effect of board independence weakens as firms grow larger. This result indicates that independent commissioners are more effective in smaller firms where their monitoring and advisory functions can operate without bureaucratic constraints, while in larger firms, their influence is limited by managerial entrenchment and structural complexity. Theoretically, this study enriches Agency Theory by demonstrating that board independence does not have a uniform impact but depends on organizational context specifically, firm size. Practically, the results encourage regulators and investors to move beyond a “one-size-fits-all” governance framework by strengthening the actual capacity and authority of independent commissioners in large corporations.

The Role of Financial Performance in Corporate Environmental Expenditure Moderated by Independent Commissioners

Muhammad Rahmadi Pratama — 2025-12-09

This study analyzes the influence of profitability, liquidity, and leverage on environmental costs, moderated by independent commissioners. The sample consists of 126 mining and palm oil companies listed on the Indonesia Stock Exchange for 2021–2023, totaling 378 observations. This Study were analyzed using panel data regression method. the results show that profitability significantly increases environmental costs, while liquidity has a significant negative effect and leverage is insignificant. Independent commissioners do not directly affect environmental costs but strengthen the link between liquidity and environmental spending. These findings suggest that financial performance shapes environmental commitments in different ways, whereas the supervisory role of independent commissioners remains limited. Theoretically, this study reinforces stakeholder theory by confirming that profits extend beyond shareholders to social–environmental needs and enriches environmental accounting literature by revealing liquidity constraints on sustainability. The implications are relevant for companies, boards, and regulators in enhancing sustainability governance.

Financial Performance on Climate Change Disclosure in the Indonesian Capital Market

Diajeng Fitri Wulan — 2025-12-09

Financial performance and climate change disclosure (CCD) in Indonesia Stock Exchange-listed enterprises are examined in this research. The study population contains 388 publicly listed firms from diverse industries to reflect the market. Random sampling minimized selection bias by giving each business an equal chance to be included in the research. Our independent variable, financial success, is assessed by return on assets (ROA), which shows how well a company makes money from its assets. CCD, the dependent variable, is assessed using the Task Force on Climate-related Financial Disclosures (TCFD) framework, which covers governance, strategy, risk management, and climate change indicators and objectives. ROA and CCD are examined using linear regression analysis to see whether enterprises with better financial situations are more inclined to declare their environmental practices. Financial success is positively and statistically significantly correlated with climate disclosure. This suggests that profitable corporations may invest more in non-financial reporting, especially climate risk and opportunity reporting. Financially strong firms may also disclose more climate-related information to boost corporate legitimacy, stakeholder confidence, and long-term commitment to sustainable business practices in response to rising global environmental expectations.

The Moderating Role of Taxation Technology on the Relationship between Tax Rates and Taxpayer Perceptions of Tax Evasion

M Doni Permana Putra — 2025-12-09

This study investigates the effect of tax rates on taxpayer perceptions of tax evasion and examines the moderating role of taxation technology in this relationship, grounded in the Theory of Planned Behavior. Employing a quantitative approach, this research collected primary data through questionnaires from a sample of 100 individual taxpayers at KPP Pratama Denpasar Barat. The data were analyzed using Moderated Regression Analysis (MRA). The results indicate that tax rates have a significant positive effect on the perception of tax evasion, suggesting higher rates increase the perceived viability of evasion. However, the study's primary finding reveals that taxation technology significantly weakens this positive relationship, acting as a negative moderator. These findings suggest that while higher tax rates may increase the incentive to evade, a robust technological infrastructure serves as an effective deterrent by increasing the perceived difficulty and risk of evasion. As a key policy implication, these results strongly advise authorities to prioritize and accelerate investment in the digital transformation of tax administration, as this technology is a critical tool for enhancing voluntary compliance by mitigating the perceived incentives for evasion.

The Role of Artificial Intelligence in Achieving the UN Sustainable Development Goals (SDGs) in Low Income Nations

Omid Tarashtwal — 2025-12-11

Artificial Intelligence has been increasingly regarded as a transformative tool to pursue the United Nations' Sustainable Development Goals, especially in low income nations plagued by infrastructural, financial, and human resource constraints that hinder sustainable development. This paper analyzes the role of AI for economic development, social inclusion, environmental sustainability, and governance by highlighting pathways, synergies, and enabling technologies. We carried out a systematic literature review based on peer reviewed journal articles published between 2020 and 2025. We searched in IEEE Xplore, Emerald Insight, MDPI, ScienceDirect, and SpringerLink databases. In total, 30 articles that were relevant to the topic, were of sufficiently high methodological quality, and were applicable to this study were included in the review. Data were extracted on the use of AI, targeted SDGs, geographic location, and key findings. Bibliometric analyses and various approaches to thematic synthesis were used to better understand research trends, keyword cooccurrence, cross SDG synergies, and newly identified challenges. Results indicate that AI improves poverty reduction, financial inclusion, optimization of the workforce, and industrial innovation; improves education, gender equality, and social equity; climate monitoring, resource management, and urban sustainability; and governance and effective partnership with regards to transparency and informed decision making. Challenges pertain to infrastructure deficits, capacity gaps, and ethical considerations. Advice for policy development, capacity building, and responsible AI deployment underpin the need for context sensitive approaches. Artificial Intelligence arises as a key enabler of integrated, scalable, and sustainable development in low income countries.