GOOD CORPORATE GOVERNANCE AND FIRM SIZE AS DETERMINANTS OF FINANCIAL SUSTAINABILITY: FINANCIAL PERFORMANCE AS MODERATOR
Published:
2026-10-31Downloads
Abstract
This study aimed to examine the effect of Good Corporate Governance and firm size on financial sustainability, with financial performance as a moderating variable, in Islamic commercial banks listed with the Financial Services Authority in Indonesia during the 2021–2025 period. The study employed a quantitative approach with an associative-causal design. The population consisted of all Islamic commercial banks registered with the Financial Services Authority, and a sample of 8 banks was selected through purposive sampling, resulting in 40 firm-year observations over five years. Secondary data were collected from annual reports and corporate governance reports. The data were analyzed using multiple linear regression and Moderated Regression Analysis with the assistance of SPSS version 25. The results showed that Good Corporate Governance had no significant effect on financial sustainability, with a significance value of 0.517. Firm size had no significant effect on financial sustainability, with a significance value of 0.125. Financial performance did not moderate the relationship between firm size and financial sustainability, with a significance value above 0.05. However, financial performance significantly and positively moderated the relationship between Good Corporate Governance and financial sustainability, with a significance value of 0.008 and an increase in the adjusted coefficient of determination from −0.015 to 0.143. These findings implied that the effectiveness of Good Corporate Governance in ensuring financial sustainability depended heavily on the bank's ability to generate healthy financial performance, while firm size alone did not guarantee financial sustainability in Indonesian Islamic commercial banks.
Keywords:
Good Corporate Governance Firm Size Financial Sustainability Financial PerformanceReferences
Amalia, D. F., & Kartika, I. (2025). The mediating role of sustainability reports on the influence of Good Corporate Governance and profitability in improving company sustainability performance. Interdisciplinary Social Studies, 4(4), 531–544.
Amilin, Daurrohmah, E. W., Paramitha, D., Puspitasari, N. F. D., & Wisnantiasri, S. N. (2025). Analisis informasi keuangan. Universitas Terbuka.
Anggara, C. N., & Harori, M. I. (2025). Effect of green finance, profitability, leverage and company size on financial sustainability ratio at Sharia Commercial Banks in Indonesia for the period 2019–2023. ESAF, 3(2), 162–178. https://doi.org/10.58812/esaf.v3i02.472
Anggorowati, A. (2024). Higher for longer phenomenon and its impact on the banking industry. Jurnal Ekonomi dan Keuangan, 26(1), 1–15.
Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory. Australian Journal of Management, 16(1), 49–66. https://doi.org/10.1177/031289629101600103
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122–136.
Haryati, S., & Kristijadi, E. (2014). The effect of GCG implementation and risk profile on financial performance at go-public national. Jurnal Akuntansi, 29(3), 237–250.
Imiyah, R. R. (2023). Pengaruh kinerja keuangan dan Good Corporate Governance terhadap financial sustainability pada Bank Umum Syariah. Universitas Islam Negeri Maulana Malik Ibrahim.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Khairiah, N., & Inayah, N. (2023). The effect of implementing Good Corporate Governance on the financial performance of Islamic banks in Indonesia. Jurnal Akuntansi dan Keuangan Islam, 2(2), 1–15.
Latifah, S. W., Rosyid, M. F., Purwanti, L., & Oktavendi, T. W. (2019). Good Corporate Governance, kinerja keuangan dan sustainability report (BUMN yang listed di BEI). Jurnal Riset Akuntansi dan Keuangan, 9(2), 200–213. https://doi.org/10.22219/jrak.v9i2.56
Mayasari, A. (2026). Sharia financing resilience in the higher-for-longer era. Jurnal Perbankan Syariah, 8(1), 1–15.
Oktoviyanti, & Murwaningsari, E. (2023). Faktor-faktor yang mempengaruhi financial sustainability pada sub-sektor perbankan. Jurnal Ekonomi Trisakti, 3(1), 1–15.
Pangestu, J. C., Nataherwin, & Meyliana. (2026). Analisa faktor yang mempengaruhi financial sustainability ratio emiten perbankan di BEI periode 2022–2024. Riset & Jurnal Akuntansi, 10(April), 1747–1755.
Pribadi, A. (2021). Islamic banking as a tool for national economic recovery. Jurnal Ekonomi Syariah, 6(1), 1–15.
Puspadini, M. (2024). The shift from short-term profitability to long-term financial sustainability in Islamic banking. Jurnal Manajemen dan Keuangan, 13(2), 1–15.
Rahim, S. A. (2024). Pengaruh Corporate Social Responsibility dan Good Corporate Governance terhadap financial sustainability dengan financial stability sebagai variabel mediasi pada Bank Syariah di Indonesia periode 2019–2023. Universitas Islam Negeri Maulana Malik Ibrahim.
Rahim, S. A., & Aisyah, E. N. (2025). Corporate Social Responsibility, Good Corporate Governance and financial sustainability: A financial stability role. Jurnal Akuntansi dan Keuangan, 25(2), 231–242.
Rifandi, A. (2021). Pengaruh ukuran perusahaan, profitabilitas dan leverage terhadap pengungkapan sustainability report. Universitas Negeri Padang.
Rohmandika, M. S. (2023). Peran kinerja keuangan, good corporate governance dan manajemen risiko pada kinerja keberlanjutan perbankan syariah di Indonesia tahun 2012–2022. Universitas Islam Negeri.
Rosa, T. A. (2025). Pengaruh risk profile, Good Corporate Governance, earnings dan capital terhadap financial sustainability ratio pada Bank Umum Syariah periode 2019–2023. Universitas Islam Negeri Raden Intan Lampung.
Rustam, A., & Adil, M. (2022). Financial sustainability ratio and aspects that affect it. Jurnal Akuntansi, 26(1), 144–160.
Sihite, C. M. I., & Marsono, A. D. (2024). Analysis financial sustainability ratio: Case study digital banking in Indonesia. Action Research Literate, 8(5), 1–7.
Surat Edaran Bank Indonesia. (2013). Surat Edaran Bank Indonesia Nomor 15/15/DPNP Tahun 2013 perihal Pelaksanaan Good Corporate Governance bagi Bank Umum. https://ojk.go.id/id/regulasi/Documents/Pages/SEBI-perihal-Pelaksanaan-Good-Corporate-Governance-bagi-Bank-Umum/SEBI 15.pdf
Wijanarko, A., Nurwulandari, A., Hasanudin, & Setyawati, I. (2025). The effect of green investment, profitability, and company size on financial sustainability: A study on the IDX 30 Index for the period 2016–2023. Jurnal Ilmiah Ekonomi Manajemen Akuntansi dan Bisnis, 3(4), 1–15.
Wuryasti, W. (2021). The growth of Islamic finance industry in the midst of the COVID-19 pandemic. Jurnal Ekonomi dan Keuangan Islam, 5(1), 1–15.
License
Copyright (c) 2026 Tesya Rinviana Hartadi, Selfiani Selfiani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
