E ISSN: 2583-049X
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International Journal of Advanced Multidisciplinary Research and Studies

Volume 2, Issue 3, 2022

The effect of firm age, firm size on financial performance with financial inclusion as intervening variable: Study on the go public banking sector in Indonesia for the 2015-2020 period



Author(s): Olaf Tri Wilopo Simanjuntak, Suripto, K Bagus Wardianto, Unang Mulkhan

Abstract:

This study was made to see how much the firm age and firm size can affect the financial performance, by looking at financial inclusion as an intervening variable. Explanatory research with quantitative methods is the type used in this research, and purposive sampling method is the sampling technique in this study. The sample used is 144 samples of the banking industry in Indonesia that have made an Initial Public Offering (IPO). Data collection can be in the form of documentation in the form of annual financial reports and company annual reports. The analysis technique used is the Structural Equation Model (SEM) using the Professional version of the Smart PLS 3 tool. The results of this study indicate that firm age on financial inclusion has a significant negative relationship direction, while firm size on financial inclusion has a significant positive relationship direction. Firm age and firm size on financial performance have a significant positive relationship direction. Financial inclusion (intervening variable) on financial performance has a significant positive relationship to direction.


Keywords: Firm Age, Firm Size, Financial Inclusion, Financial Performance, and Structural Equation Model (SEM)

Pages: 607-615

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