Financing policy, liquidity policy, operational policy and financial performance: Empirical study on bprs using independent commissioners as moderating variables
Keywords:
Financing policy, Liquidity policy, Operational policy, Financial performance, Independent commissioner, BPRSAbstract
This study aims to analyze the effect of financing policy, liquidity policy, and operational policy on the financial performance of Sharia Rural Banks (BPRS) with independent commissioners as moderating variables. This study was conducted at BPRS located in the working area of the Financial Services Authority (OJK) Jabodebek and Banten Province. The data used are secondary data obtained from the BPRS financial reports for 2020–2023. The analysis method used is moderation regression analysis with the Partial Least Squares (PLS) approach. The results of the study show that financing policy, liquidity policy, and operational policy have a significant effect on BPRS financial performance. Independent commissioners are proven to moderate the relationship between financing policy and financial performance as well as the relationship between operational policy and financial performance. However, independent commissioner moderation is not significant in the relationship between liquidity policy and financial performance. This finding indicates the importance of the existence of independent commissioners in improving supervision and good corporate governance in BPRS. This study is expected to provide practical contributions to BPRS managers and policy makers in developing strategies to improve financial performance through optimizing internal policies and the role of independent commissioners. In addition, this study also adds to the literature related to the role of independent commissioners in the Islamic banking sector in Indonesia.
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