IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 9 NO. 1 2023
DOI: https://doi.org/0.56201/ijebm.v9.no1.2023.pg106.117

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The Influence of Fintech on Sustainability and Stock Return in Indonesian Banking

Endika Sunaryo & Farah Margaretha Leon

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Abstract

The use of fintech in Indonesia still needs to be improved for the needs of the Indonesian people. High and sufficient use of fintech is associated with sustainability and returns on company shares. The aim of this research is to see the effect of fintech on sustainability and returns on company shares. The independent variable in this study is fintech. The dependent variable is sustainability and stock returns while the control variable is company age, leverage, and Big 4. This research was conducted by collecting data from 34 companies in the banking sector in Indonesia over a period of 5 years (2017-2021) and using a panel data regression model. in testing. The results of the research conducted explained that fintech is not significant for stock returns, but has a positive effect on sustainability. Firm age and leverage are not significant, but Big 4 has a positive effect on stock returns. Firm age has a positive effect but leverage and Big 4 do not affect sustainability. The research that has been carried out implies that it is better to increase the number of ATMs to make it easier for customers to make transactions and to select auditors belonging to the Big 4 category so that stock prices can increase.

keywords:

Big 4, fintech, firm age, stock returns, sustainability

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