Internal Factors Associated with Bank Stability in Banks Listed on the Indonesia Stock Exchange

This study examines internal factors associated with bank stability using 195 bank-year observations from 39 Indonesian listed banks during 2021–2025. Stability is measured by the Z-score. Reported random-effects coefficients are negative for liquidity risk and debt-to-assets leverage; capital, credit-risk, funding-stability and size estimates provide insufficient evidence of associations. Reduced-rank covariance and only five period clusters prevent verified significance conclusions. Confidence intervals and reproducible volatility definitions require confirmation. Leverage overlaps with Z-score capitalization. The findings describe conditional accounting associations, without establishing causal policy effects or the practical irrelevance of other factors.

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Publication Details

Journal
JURNAL MANAJEMEN MOTIVASI
Published
2026-10-30
DOI
https://doi.org/10.29406/jmm.v22i2.9539
Primary Topic
Banking stability, regulation, efficiency
Type
article
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article

Internal Factors Associated with Bank Stability in Banks Listed on the Indonesia Stock Exchange

Farah Margaretha Leon, Sasya Ayu Syabrina, Salsyabila Aulia Hasanah
3 links
JURNAL MANAJEMEN MOTIVASI
Banking stability, regulation, efficiency
article

Internal Factors Associated with Bank Stability in Banks Listed on the Indonesia Stock Exchange

Farah Margaretha Leon, Sasya Ayu Syabrina, Salsyabila Aulia Hasanah
article en

Abstract

This study examines internal factors associated with bank stability using 195 bank-year observations from 39 Indonesian listed banks during 2021–2025. Stability is measured by the Z-score. Reported random-effects coefficients are negative for liquidity risk and debt-to-assets leverage; capital, credit-risk, funding-stability and size estimates provide insufficient evidence of associations. Reduced-rank covariance and only five period clusters prevent verified significance conclusions. Confidence intervals and reproducible volatility definitions require confirmation. Leverage overlaps with Z-score capitalization. The findings describe conditional accounting associations, without establishing causal policy effects or the practical irrelevance of other factors.

JURNAL MANAJEMEN MOTIVASIVol. 22(2)
Universitas Trisakti (ID)
Openalex Percentile: Top 9%
Banking stability, regulation, efficiency
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