Peran Political Connection dalam Memoderasi Ukuran Perusahaan dan Keberadaan Perempuan terhadap Profitabilitas Perusahaan Perbankan di Indonesia
Abstract
This study examines the relationship between company size and the presence of women with banking profitability in Indonesia, with political connections as a moderating variable. Profitability in this study is determined by the return on assets (ROA) ratio. This study uses 42 banking companies listed on the Indonesia Stock Exchange with observations from 2020 to 2024. The research analysis was conducted using multiple regression to measure the effects of company size and the presence of women on profitability, and using moderated regression to test the moderating effect of political connections on the strength of these effects. This study shows that company size positively affects banking profitability. Meanwhile, the presence of women has no effect on banking profitability. Furthermore, the moderating effect of political connections strengthens the influence of company size and female representation on banking profitability. This study finds that Political connections in banking companies can help banks achieve profitability through company size and female representation.References
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Wong, W. Y., & Hooy, C. W. (2018). Do types of political connection affect firm performance differently? Pacific Basin Finance Journal, 51, 297–317. https://doi.org/10.1016/j.pacfin.2018.08.009
Wu, H., Xiang, W., Fang, X., Lei, P., Ouyang, S., & Deng, X. (2017). Tree functional types simplify forest carbon stock estimates induced by carbon concentration variations among species in a subtropical area. Scientific Reports, 7(1), 1–11. https://doi.org/10.1038/s41598-017-05306-z
Yaseen, A., & Widarjono, A. (2024). Does bank size matter for Islamic banks’ profitability? The insight from Indonesia . Proceeding International Conference on Accounting and Finance , 197–204.
Yu, B., Lenard, M. J., York, E. A., & Wu, S. (2017). Female leadership in banking and bank risk. Academy of Accounting and Financial Studies Journal, 21(3), 1–19.
Anggari, N. L. S., & Dana, I. M. (2020). The effect of capital adequacy ratio, third party funds, loan to deposit ratio, bank size on profitability in banking companies on IDX . American Journal of Humanities and Social Sciences Research (AJHSSR), 4(12), 334–338.
Azmi, Y. U., & Setyowati, L. (2023). Firm size and financial performance on value of banking companies. JPS (Jurnal Perbankan Syariah), 4(2), 116–131.
Dadanlar, H. H., & Abebe, M. A. (2017). Female Leadership in the Upper Echelons and Corporate Diversity Misconduct . 2017, 14030.
Elnahass, M., Trinh, V. Q., & Li, T. (2021). Global banking stability in the shadow of Covid -19 outbreak. Journal of International Financial Markets, Institutions and Money, 72, 101322.
Faccio, M., Masulis, R. W., & Mcconnell, J. J. (2006). Political connections and corporate bailouts. Journal of Finance, 61(6), 2597–2635. https://doi.org/10.1111/j.1540-6261.2006.01000.x
Fisman, R. (2001). Estimating the value of political connections. American Economic Review, 91(4), 1095–1102. https://doi.org/10.1257/aer.91.4.1095
Garcia, A. S., & Orsato, R. J. (2020). Testing the institutional difference hypothesis: A study about environmental, social, governance, and financial performance. Business Strategy and the Environment. https://doi.org/10.1002/bse.2570
Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Review, 32(2), 334–343.
Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.
Hillman, A. J. (2005). Politicians on the Board of Directors: Do Connections Affect the Bottom Line? Journal of Management, 31(3), 464–481. https://doi.org/10.1177/0149206304272187
Hillman, A. J., & Dalziel, T. (2003). Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management Review, 28(3), 383–396. https://doi.org/10.5465/AMR.2003.10196729
Jou, R., Chen, S., & Tsai, J.-Y. (2017). Politically connected lending, government capital injection, and bank performance. International Review of Economics \& Finance, 47, 220–232.
Kalbuana, N., Taqi, M., Uzliawati, L., & Ramdhani, D. (2022). The effect of profitability, board size, woman on boards, and political connection on financial distress conditions. Cogent Business \& Management, 9(1), 2142997.
Lathifah, M. H., & Suyanto, H. (2022). Kebijakan single presence policy terhadap struktur kepemilikan bank pasca konsolidasi bank umum. Jurnal Usm Law Review, 5(1), 16–30.
Luh, P. K., Kusi, B. A., Gyeke-Dako, A., & Fiador, V. O. (2022). Female corporate board executives and bank profitability: exploring for complementarities and synergies. African Finance Journal, 24(1), 37–49.
OJK. (2023). Statistik Perbankan Indonesia 2023 (Vol. 22).
Regehr, K., & Sengupta, R. (2016). Has the relationship between bank size and profitability changed? Economic Review (01612387), 101(2).
Sekaran, U., & Bougie, R. (2017). Metode Penelitian Bisnis (6th ed.). Salemba Empat.
Sojli, E., & Tham, W. W. (2017). Foreign political connections. Journal of International Business Studies, 48(2), 244–266. https://doi.org/10.1057/s41267-016-0059-3
Sufian, F., & Habibullah, M. S. (2010). Does economic freedom fosters banks’ performance? Panel evidence from Malaysia. Journal of Contemporary Accounting & Economics, 6(2), 77–91.
Supiyadi, D., & Novita, I. (2023). The Effect of Firm Size , Credit Risk , Interest Rates , and Liquidity on Bank Profitability : Study on State - Owned Banks in Indonesia . Jurnal Ilmu Keuangan Dan Perbankan (JIKA), 13(1), 33–44.
Terraza, V. (2015). The effect of bank size on risk ratios: Implications of banks’ performance. Procedia Economics and Finance, 30, 903–909.
Utami, N. P. (2020). Political Connection, Related Party Transactions, and Firm Performance: Evidence from Indonesia. s-space.snu.ac.kr. https://s-space.snu.ac.kr/handle/10371/169082%0Ahttps://s-space.snu.ac.kr/bitstream/10371/169082/1/000000161669.pdf
Widyadana, M. C., Marlina, M., & Mulyantini, S. (2021). Determinan Kinerja Keuangan Perbankan Konvensional Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2019. Assets: Jurnal Ekonomi, Manajemen Dan Akuntansi, 11(2), 237–251.
Wong, W. Y., & Hooy, C. W. (2018). Do types of political connection affect firm performance differently? Pacific Basin Finance Journal, 51, 297–317. https://doi.org/10.1016/j.pacfin.2018.08.009
Wu, H., Xiang, W., Fang, X., Lei, P., Ouyang, S., & Deng, X. (2017). Tree functional types simplify forest carbon stock estimates induced by carbon concentration variations among species in a subtropical area. Scientific Reports, 7(1), 1–11. https://doi.org/10.1038/s41598-017-05306-z
Yaseen, A., & Widarjono, A. (2024). Does bank size matter for Islamic banks’ profitability? The insight from Indonesia . Proceeding International Conference on Accounting and Finance , 197–204.
Yu, B., Lenard, M. J., York, E. A., & Wu, S. (2017). Female leadership in banking and bank risk. Academy of Accounting and Financial Studies Journal, 21(3), 1–19.
Published
2026-01-30
How to Cite
MUFID, Indra Faisal Rizki; KUMALASARI, Khalida.
Peran Political Connection dalam Memoderasi Ukuran Perusahaan dan Keberadaan Perempuan terhadap Profitabilitas Perusahaan Perbankan di Indonesia.
JURNAL ONLINE INSAN AKUNTAN, [S.l.], v. 10, n. 2, p. 90-105, jan. 2026.
ISSN 2528-0163.
Available at: <https://ejournal-binainsani.ac.id/index.php/JOIA/article/view/3823>. Date accessed: 07 july 2026.
doi: https://doi.org/10.51211/joia.v10i2.3823.
Section
Articles
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