Abstract:This study investigates the role of acquisition premiums in mergers and acquisitions (M&A) and their impact on shareholder wealth, focusing on five major Indian deals in pharmaceuticals, retail, banking, steel, and renewable…
able energy sectors. Potential synergies often justify acquisition premiums ranging from approximately 15% to 40% above target companies’ market values. However, market responses suggest that such premiums may not consistently result in value creation for acquiring firms' shareholders. Empirical findings reveal mixed outcomes: Sun Pharma’s acquisition of Ranbaxy led to a 9.8% share price increase within five days, while Tata Steel’s high-premium acquisition of Bhushan Steel saw only a 1.7% gain. In contrast, deals like Reliance–Future Retail and Tata Power–Welspun Power showed minimal or negative returns, despite sizable premiums. These patterns indicate that premium size alone is not a reliable predictor of post-deal shareholder wealth creation. The study concludes that M&A success depends more on strategic fit, market timing, and sectoral dynamics than on the premium offered. This analysis contributes to the broader M&A discourse by offering evidence-based insights into how premium valuations can either maximise or dilute shareholder value, aiding investors, corporate strategists, and policy analysts in deal assessment
Abstract:Bad credit is one of the main problems faced by the banking sector, which can threaten financial stability and bank profitability. This research aims to analyze the causes of bad credit through the literature review method,…
od, by identifying and evaluating relevant scientific works. The research results show that the causes of bad credit can be categorized into four main factors: internal factors of the borrower, external factors of the borrower, internal factors of the bank, and regulatory and policy factors. The borrower's internal factors include poor management and weak financial capabilities, while external factors include unstable macroeconomic conditions and intense business competition. Internal bank factors include weak credit assessment processes and inappropriate credit policies, while regulatory and policy factors include less effective regulations and erratic changes in government policy. To reduce the risk of bad credit, banks and financial institutions are advised to improve credit assessment processes, tighten supervision of the use of funds, develop credit policies that are more flexible but based on in-depth risk analysis, and strengthen regulations and supervision. Macroeconomic risk mitigation strategies are also important to maintain financial stability. By implementing these strategic steps, it is hoped that the risk of bad credit can be minimized, support the stability and sustainability of the banking sector, and increase trust and security for all parties involved. This research emphasizes the importance of a comprehensive and coordinated approach in credit risk management to ensure the sustainability and stability of the financial system.
Abstract:Exploring the multifaceted dynamics of customer loyalty in Islamic banking, this study investigates the roles of trust and corporate image in Eastern Indonesia's Islamic banking sector. Employing structural equation modelling…
lling (SEM) as the analytical tool, the research uncovers the intricate interplay between corporate image, trust, and customer loyalty. Results indicate that a solid corporate image significantly and positively influences customer trust. This trust is crucial in boosting customer loyalty towards Islamic banking services. Highlighting the importance of corporate image, the study reveals its role as a cornerstone in building and reinforcing customer trust, which is crucial for fostering long-term customer relationships. The research provides strategic insights for Islamic banks in Eastern Indonesia, suggesting that a focus on enhancing corporate image and trust can lead to increased customer loyalty. This contribution enriches the understanding of loyalty dynamics within the Islamic banking sector, underscoring the significance of trust and corporate image in the unique market context of Eastern Indonesia.
Abstract:This study aims to determine the financial performance of PT. Bank Sulsebar for the 2017-2021 period is based on three types of ratios, namely liquidity ratios, solvency ratios and profitability ratios. The population in…
this study is the financial statements of PT. Sulselbar Bank. The sample in this study is the financial statements of PT. Bank Sulselbar Period 2017-2021. The data collection technique used is documentation. The data analysis technique used is descriptive quantitative method and financial ratio analysis. The results of this study indicate that the calculation of the ratio of liquidity and profitability ratios of PT. Bank Sulselbar is above the standard of the banking industry. Calculation of the solvency ratio of PT. Bank Sulselbar is below the standard of the banking industry. So it can be concluded that the financial performance of PT
Abstract:Service quality and the use of DIGI mobile banking application features are factors that can influence customer satisfaction in utilizing digital banking services. This study aims to determine the effect of service quality…
ty and the use of DIGI mobile banking features on customer satisfaction at Bank BJB KCP Katapang. The research method employed was quantitative, with data collected through questionnaires distributed to 96 respondents, both via Google Form and printed sheets. Data processing was carried out using SPSS version 25. The analysis results show that service quality has a significant effect on customer satisfaction, with a significance value of 0.000 < 0.05 and a t-count of 3.839 > t-table of 1.986. Similarly, the DIGI mobile banking application features also have a significant effect, with a significance value of 0.000 < 0.05 and a t-count of 3.741 > t-table of 1.986. Simultaneously, service quality and application features have a positive and significant effect on customer satisfaction, as evidenced by a significance value of 0.000 < 0.05 and an F-count of 41.054 > F-table of 3.09. These findings highlight the importance of improving service quality and optimizing application features to maintain and enhance customer satisfaction.
Abstract:The existence of banking institutions has an important role in the country's economy. Banking institutions have three main functions, namely financial intermediary, agent of development and agent of trust. The existence…
and sustainability of banking institutions must be pursued as much as possible by bank managers, because their existence can improve the economy. One of the efforts made by banking institutions is to channel credit to parties in need to meet customer needs and obtain benefits for banking institutions. The research method includes explanatory-descriptive-quantitative research. The population is 24,675 consumer credit customers of BRIGuna Bank BRI in the horseshoe area, East Java. The sample is 250 customers who have received BRIGuna consumptive credit at least twice in a row, using non-probability sampling-purposive sampling on a quota basis. Analysis tools and techniques using SPSS, SEM, and AMOS version 24. Data collection techniques using a questionnaire / google form and interviews. Service quality and innovation of a bank will improve the company's image, sustainable competitive advantage based on loyalty and the intention to re-elect in one bank. Innovation also affects customer satisfaction, while loyalty-based sustainable competitive advantage is also influenced by the image of banking companies. Loyalty-based sustainable competitive advantage affects the intention to re-elect in a bank. Further research to be more specific on the quality of consumer credit services, requires a collaborative approach to customers which is social capital and focuses on innovation that provides convenience for customers while maintaining the company's image in the eyes of customers because this is the key to a loyalty-based sustainable competitive advantage.
Abstract:This study is motivated by the intensifying competition in Indonesia's banking industry amid digital transformation and growing global economic mobility. In such a context, product innovation becomes a crucial strategy to…
o strengthen a bank's competitive position. PT Bank Woori Saudara Indonesia 1906 Tbk introduced the WiGo Savings product, specifically designed for South Korean citizens who plan to live or work in Indonesia through a pre-account opening scheme. This research aims to analyze the role of WiGo Savings in enhancing the bank's competitiveness, particularly in terms of product differentiation and the potential strengthening of low-cost funds (CASA). The study employs a qualitative descriptive approach with a case study method, using literature review and secondary data analysis from bank reports, media publications, and academic references related to banking innovation. The findings indicate that the pre-arrival account opening mechanism reduces administrative barriers, accelerates service activation, and creates early customer engagement. The product also shows the potential to increase CASA composition, leading to lower cost of funds and greater flexibility in credit pricing. Furthermore, WiGo enhances product differentiation and institutional branding as a bank responsive to cross-border transaction needs. However, its effectiveness depends on successful market education, cross-jurisdiction regulatory compliance, and technological system integration.
Abstract:This study aims to analyze the influence of business strategy and profitability on firm value, with Corporate Social Responsibility (CSR) as a mediating variable at Bank BPD DIY. This study uses a quantitative causality…
approach with a confirmatory nature, testing the extent to which the Resource-Based View (RBV) and Stakeholder Theory are confirmed in the context of the regional banking industry. Primary data were collected through a 1–5 Likert-scale questionnaire from all BPD DIY managers (census method, 163 respondents) who met the criteria of managerial position, minimum three years of service, and involvement in strategic policy. Data analysis was performed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with the assistance of SmartPLS. This involved testing the outer model (convergent validity, discriminant validity, reliability) and inner model (path coefficient, R², f², Q²) to assess the direct and indirect effects between variables. The variables studied included business strategy, profitability, CSR, and firm value, operationalized across several dimensions, including future orientation, operational efficiency, the social and environmental dimensions of CSR, and market value and corporate reputation. The instrument was independently developed based on theoretical synthesis (David & David, Houston, Teodorescu Ionescu, Carroll, and others), then validated through expert judgment before being tested for validity and reliability on pilot respondents. The results showed that business strategy had a positive effect on CSR and firm value, while profitability had a positive effect on CSR and firm value, aligning with the view that slack resources and a prospector strategy encourage stronger CSR activities and improved market perception. CSR was shown to have a positive effect on firm value and acted as a mediating variable in the relationships between business strategy and firm value and profitability and firm value. Thus, CSR implementation strengthens the transmission of the influence of strategy and financial performance on increasing firm value. These findings confirm that the integration of a sustainability-oriented business strategy, strong profitability performance, and consistent CSR implementation is a crucial combination for enhancing firm value in the regional banking sector.
Abstract:This study aims to examine the effect of environmental accounting disclosure and environmental performance on the financial performance of banking companies listed on the Indonesia Stock Exchange during the period 2019–2023.…
�2023. This research employs a quantitative approach using secondary data obtained from annual reports and sustainability reports. The sample consists of eight banking companies selected through purposive sampling. Financial performance is measured using Return on Assets (ROA), environmental performance is measured using the Sustainable Banking Assessment (SUSBA) index, and environmental accounting disclosure is measured using the Environmental Disclosure Index (EDI). The data are analyzed using multiple linear regression analysis after passing classical assumption tests. The results indicate that environmental accounting disclosure has a positive and significant effect on financial performance. In addition, environmental performance also has a positive and significant effect on financial performance. These findings suggest that transparent environmental disclosure and the implementation of sustainable banking practices contribute to improved financial performance. Therefore, banking companies are encouraged to enhance environmental accounting disclosure and strengthen environmental performance as part of their sustainability strategy.
Abstract:Digital transformation has reshaped the marketing communication paradigm of the banking industry in Indonesia, encouraging financial institutions to adopt creative strategies to reach digital consumers. This study aims to…
o analyze the influence of content marketing, omnichannel marketing, and electronic word of mouth (eWOM) on purchase decisions through brand awareness in BCA’s public service advertisement “Don’t Know Kasih No!”. This banking security education campaign successfully garnered more than 100 million views through its unique storytelling approach, engaging audiovisual elements, and relevant humor, making it an interesting phenomenon to be examined scientifically. This research employs a descriptive quantitative method using the Structural Equation Modeling–Partial Least Square (SEM-PLS) approach. The research population consists of Indonesian individuals aged 17–40 years (Generation Z and Millennials) who are BCA customers and have been exposed to the “Don’t Know Kasih No.!” advertisement. The sample size was determined using Cochran’s formula, resulting in a minimum of 100 respondents, selected through purposive sampling. Data were collected using an online questionnaire developed based on a five-point Likert scale containing 47 statement items. Data analysis was conducted using SmartPLS 4.0 to evaluate validity, reliability, and structural hypothesis testing.