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Performance Analysis of Indonesia’s Largest Banks and China Banking Titans: Company Performance under the Wilcoxon Signed Rank Test

In: Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024)

Author

Listed:
  • Anindya Luthfi Syifadevi

    (Telkom University, School of Economics and Business)

  • Nora Amelda Rizal

    (Telkom University, School of Economics and Business)

Abstract

This study aimed to analyze the financial performance of the banking sector by comparing the four banks with the most significant assets in Indonesia and the four large banks in China, which represent the banks with the largest assets in the world in 2023. The research used several financial ratios including profitability, liquidity, capital adequacy, risk and solvency to measure the banking companies’ financial performance. Secondary data from the financial reports of each company from 2008 to 2022 were analyzed since this period started the global crisis. Non-parametric analysis was conducted using the Wilcoxon Signed Rank Test method to test for differences in paired data since the data wasn’t normal. The study’s findings show differences in financial performance between the KBMI 4 banking companies in Indonesia and China. These findings have significant implications for investors, regulators, and banks. Investors can use the various ratios analyzed to make informed decisions when investing in companies. Regulators can create policies and supervise a country’s banking industry by looking at the level of risk and solvency of the analyzed ratios. Based on the study’s findings, banks can improve their financial performance by making strategic decisions. Therefore, this study provides a valuable contribution to understanding the banking sector dynamics and the importance of financial performance in an ever-changing global context.

Suggested Citation

  • Anindya Luthfi Syifadevi & Nora Amelda Rizal, 2024. "Performance Analysis of Indonesia’s Largest Banks and China Banking Titans: Company Performance under the Wilcoxon Signed Rank Test," Advances in Economics, Business and Management Research, in: Suhal Kusairi & Forget Mingiri Kapingura & Putri Fariska Sugestie & Nizam Ahmat (ed.), Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024), pages 257-271, Springer.
  • Handle: RePEc:spr:advbcp:978-94-6463-558-4_15
    DOI: 10.2991/978-94-6463-558-4_15
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