Issue #4 (Volume 19 2024)

Understanding the impact of economic factors on bank lending is crucial in Kazakhstan’s modern economy, characterized by volatile inflation and fluctuations in real wages. This paper aims to investigate the link between bank lending and economic factors such as inflation, real wages, and consumer expenditure in a regional context. Data from the Bureau of National Statistics and the National Bank, covering the period from 2012 to 2022, were used to uncover how economic factors influence bank lending. For the analysis, various economic indicators were integrated through normalization and averaging. Analysis reveals significant regional disparities in real wages and consumer expenditures, which impact the demand for bank credit. The results of the correlation matrix showed that both real wages (P-value < 0.001) and inflation (P-value < 0.001) significantly impact bank lending, with an R² value of 0.998, indicating that the model explains 99.8% of the variation in bank lending. The regression analysis highlights that regions with higher real wages, such as Astana, Almaty, and Atyrau, provide the most favorable conditions for banking sector growth, demonstrated by a strong relationship between wages and bank lending. In contrast, regions with lower wage levels, such as Turkestan and Zhambyl, show a significantly weaker connection (around 0.65), reflecting their lower attractiveness for banking investment and emphasizing the need for policies to address social inequality. The Durbin-Watson test confirmed no autocorrelation in residuals (DW = 1.89), although heteroscedasticity was detected, suggesting the need for further model adjustments. The study emphasizes the importance of developing economic policies that can balance regional development and improve financial stability.

Acknowledgments
This research has been funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant “Development of mechanisms for reducing social inequality and improving the welfare of the population of Kazakhstan” AP19174744).

Digital financial services are crucial in boosting the competitive edge of businesses and economies in numerous developing nations. This study aims to explore the factors that affect consumers’ perceptions of the implementation of consumer protection laws and their willingness to continue using digital financial services. Data were collected through interviews with 689 Gen Z consumers (born after 1996) who have used digital financial services in Vietnamese commercial banks. The results of the partial least square – structural equation modeling indicate that six factors influence attitudes toward the enforcement of consumer protection laws, in descending order: perceived benefits, understanding of legal regulations, perceived asymmetry, perceived risk, understanding of technology and digital finance, and understanding of dispute resolution. Additionally, attitudes toward law enforcement, as well as understanding of technology and digital finance, positively impact consumers’ intention to reuse digital financial services, while perceived risk has the opposite effect. Furthermore, all six independent factors impact the intention to reuse digital financial services through the mediating role of attitudes toward the enforcement of consumer protection laws. The study’s findings also lay the groundwork for policy recommendations for legislative authorities and strategic guidance for service providers and consumers in emerging markets in the future.

Acknowledgment
This study is the result of collaboration between researchers from the University of Law, Hue University, and School of Business and Economics, Duy Tan University. The authors would like to thank both institutions for their support and facilitation in the publication of this research. This study was conducted under project code DHH2024-12-85, Decision No. 298/QĐ-ĐHH dated March 27, 2024, issued by the Director of Hue University.

This study investigates the short-run dynamics among Islamic financial depth, interest rates, inflation, and their impact on Saudi Arabian economic output using quarterly information spanning 2017–2023. The study employed a vector autoregressive model due to the non-cointegrated nature of the variables. Results indicate positive short-run relationships between the current GDP per capita and its lagged value, and between economic growth and inflation. Conversely, interest rates demonstrated a negative short-run relationship with economic growth, while Islamic financial depth showed a positive but lagged impact. Wald tests confirmed short-run causality from inflation, interest rates, and Islamic financial depth to GDP. These findings suggest that keeping inflation in check with good central bank policies is important for stable markets and a growing economy. Furthermore, the size of the Islamic finance sector in Saudi Arabia seems to boost the country’s economy. The findings provide useful information for Saudi Arabian decision-makers in government and Islamic financial institutions.

Trust is key to mobile banking adoption, shaping customer confidence in the service. Trusting behaviors and expectations vary between genders and across generational cohorts, influenced by factors like system and information quality. As such, the purpose of this study was to determine whether South African Generation Y male and female banking customers differ in their mobile banking trust, system, and information quality. In accordance with a descriptive research design, self-administered surveys were voluntarily distributed to 334 South African mobile banking participants. Using structural equation modeling, the study found that, among the male participants, the system quality of mobile banking predicts their mobile banking trust (β = 0.72, p < .001) and perceived information quality of the system (β = 0.94, p < .001). However, their mobile banking trust had an insignificant influence on their perceived information quality (β = –0.04, p > .001). For female Generation Y banking customers, mobile banking system quality was a significant predictor of both trust (β = 0.53, p < .001) and information quality (β = 0.69, p < .001). In addition, the path between trust and information quality was statistically significant (β = 0.17, p < .05). Determining the role of trust and its relationship between information and system quality of mobile banking among males and females is essential for understanding customer behavior, enhancing user experience, mitigating perceived risk, and guiding strategic decision-making in the mobile banking industry.

This paper examines how good corporate governance (GCG) affects Indonesian banks’ non-performing loans (NPLs) and its relevance to the current banking sector situation in Indonesia. The research findings provide a comprehensive understanding of the effect of bank-specific factors on NPLs, offering timely and important insights for the banking industry. This quantitative study focuses on commercial banks listed on the Indonesian Stock Exchange in 2021. The observation period spans four years (2018–2021), utilizing 216-unit panel data from 54 banks for analysis. Documentation was used for data collection, and panel data multiple regression analysis was employed as the data analysis technique. The findings indicate that increased board of directors’ meetings are associated with higher NPLs, while having independent board commissioners correlates with lower NPLs. The p-value of the board of director meetings is 0.027, and the coefficient is 0.005037. The p-value of the board of independent board commissioners is 0.017, and the coefficient is –0.00109. Effective GCG implementation is crucial in maintaining credit quality and reducing NPL levels. The p-value of the GCG score is 0.043, and the coefficient is –0.42985. However, the frequency of Board of Commissioners’ meetings does not significantly affect NPLs. The study also shows that the Loan Deposit Ratio (LDR) and bank size negatively and significantly impact NPLs. In contrast, Return on Equity (ROE) and leverage do not significantly affect NPL levels in Indonesian banks. This study provides empirical evidence that underscores the importance of robust GCG, especially during the challenging business conditions triggered by the pandemic.

Acknowledgments
This study received funding from LPPM UNNES, contract number 12.12.4/UN37/PPK.10/2023.

Adopting International Financial Reporting 9 is critically relevant as it significantly transforms accounting practices, particularly in credit risk management, for banks in Jordan. The primary purpose of this study is to examine the impact of implementing International Financial Reporting 9 on the financial performance and credit risk management practices of Jordanian banks. A quantitative analysis was conducted using the Difference-in-Differences approach and Fixed Effects models on data from 19 banks operating between 2012 and 2022.
The results indicate that the adoption of International Financial Reporting 9 led to a substantial increase in loan loss provisions, with a mean increase of 0.25 (t-value = 18.00). This increase in loan loss provisions negatively affected profitability metrics such as Return on Assets and Return on Equity, which showed mean decreases of 0.0857 (t-value = 4.22) post-implementation. Despite the negative impact on profitability, the findings also highlight improvements in financial transparency and stability due to more accurate credit risk assessment.
While the adoption of International Financial Reporting 9 imposes operational and financial challenges, it enhances the robustness and clarity of financial reporting in Jordanian banks.

Employee retention is a critical challenge in the banking sector, with high turnover rates leading to significant costs and operational disruptions. This study investigates the mediating role of employee engagement in the relationship between recruitment and selection practices and employee retention at the National Bank of Bahrain (NBB). A quantitative cross-sectional survey approach was employed, with data collected from a random sample of 257 NBB employees across various departments and hierarchical levels. The study utilized structural equation modeling via SmartPLS to analyze the data. Results indicate that recruitment and selection practices significantly influence employee engagement (β = 0.861, p < 0.000) and employee retention (β = 0.455, p < 0.006). Moreover, employee engagement was found to have a significant positive effect on employee retention (β = 0.406, p < 0.018). Notably, the study reveals a significant indirect effect of recruitment and selection on employee retention through employee engagement (β = 0.35, p < 0.019), confirming the mediating role of employee engagement. These findings emphasize the importance of strategic recruitment and selection practices in fostering employee engagement and enhancing retention rates. The study significantly contributes to the literature on human resource management in the banking sector, providing a deeper understanding of employee engagement’s role in retention and offering practical implications for organizations seeking to improve their talent management strategies and reduce turnover.

This study aims to investigate how talent management practices, career development, and organizational culture influence employee retention in Jordan’s banking sector. Given the competitive nature of the financial industry, the need to retain talent is critical for organizations. Questionnaires were distributed to 257 full-time employees of various commercial banks in Jordan who have been with their organizations for at least a year, based on this quantitative study. The study made an effort to ensure the sample was both diverse and stable. The study included respondents from various departments, levels, and sizes of banking companies in the sample to enhance its validity. These criteria were designed to include participants who have worked in the organization for a longer period, enabling them to understand the impact of talent management practices and organizational culture. The results reflect that effective talent management practices boost employee retention. The study further attested that career development opportunities and an organizational culture are important moderating factors to strengthen the relationship. According to the research findings, an organization should implement a fully realized approach to talent management with career development and embrace an organizational culture that enhances employee retention.

The growing need to comprehend how dividend policy affects bank size, particularly in emerging markets like Jordan, makes this study relevant. Bank size, often measured by total assets, is a key indicator of financial strength and stability. This study aims to examine the relationship between various measures of dividend policy – dividend per share, dividend yield, and dividend per share to earnings per share ratio – and bank size in Jordanian banks, using earnings per share as a control variable.
The study employs ordinary least squares regression analysis to investigate the relationship between these variables over a sample of Jordanian banks. Three regression models were constructed to evaluate the impact of each dividend measure on bank size. The results indicate a significant positive relationship between dividend per share and bank size, and between the dividends per share to earnings per share ratio and bank size. The results show that approximately 43.9% of the variance in bank size is explained by the Dividends per share and Earnings per share, and a significant positive correlation is observed between total assets (bank size) and dividend per share, with a coefficient of 53%. Dividend yield, however, showed no significant impact on bank size.
The results support that Jordanian banks with a sound dividend policy on dividend per share and its continuity with earnings exhibit higher asset growth. In this respect, bank growth appears to be highly dependent on a prudent dividend policy even from an emerging markets perspective.

The management of dormant accounts and unclaimed balances is a pressing challenge in the banking sector of the United Arab Emirates (UAE), particularly given the complex regulatory landscape. This study analyzes 150 dormant accounts across five major UAE banks (Emirates NBD, First Abu Dhabi Bank, Dubai Islamic Bank, Sharjah Islamic Bank, and Abu Dhabi Commercial Bank) and identifies gaps in the legal framework, including the absence of clear definitions and handling of non-monetary assets.
The study investigates the legal framework governing dormant accounts, specifically focusing on the Dormant Accounts System No. 1 of 2020. The results highlight critical issues, including the lack of clear timelines for transferring unclaimed balances and inconsistencies in communication protocols for notifying account holders. Furthermore, the study emphasizes the need for standardized practices across financial institutions in the UAE.
To address these challenges, the study proposes legislative amendments to improve asset management and consumer protection. Key recommendations include establishing standardized definitions, implementing automated tracking systems for dormant accounts, and integrating dormant balances into social welfare programs to enhance public trust. These reforms could significantly improve operational efficiency and legal clarity in the UAE banking sector, contributing to a more transparent and effective management of dormant accounts and unclaimed balances.

Acknowledgments
The authors are thankful to the Deanship of Graduate Studies and Scientific Research at the University of Bisha for supporting this work through the Fast-Track Research Support Program.

The purpose of this study was to measure the performance of mobile banking by offering an integration from the diffusion of innovation and service convenience models among college students in Indonesia. This study uses a cross-sectional design with a survey study as a data acquisition strategy and the quantitative research type. The questionnaire was completed by 202 respondents from the University of North Sumatra, Telkom Mercubuana, Multimedia Nusantara, Bengkulu, Brawijaya, Katolik Widya Mandala Surabaya, Negeri Jakarta, Tarumanagara, Trisakti, and Pembangunan Nasional Veteran, due to their active use of mobile banking. Data analysis used the partial least squares structural equation modeling approach, where the service convenience model was analyzed in the second order and the diffusion of innovation model was analyzed in the first order. The results prove that decision convenience, access convenience, transaction convenience, benefit convenience, and post-benefit convenience are the determining dimensions of service convenience and have a significant positive effect on mobile banking performance. In addition, compatibility also has a significant positive effect on mobile banking performance. However, relative advantage and complexity do not affect mobile banking performance.

The paper builds on the existing literature on monetary policy frameworks, exploring their role in balancing price stability, economic growth, and social equity. The aim is to analyze the influence of macroeconomic, in particular monetary, factors on income inequality in Ukraine. Using annual data from 1999 to 2021, the study employs multiple regression analysis to assess the impact of inflation, unemployment, monetization, and the key policy rate on income inequality. The results indicate that inflation and unemployment significantly contribute to rising inequality, while increased monetization and higher key policy rates reduce it. The findings underscore the need for a monetary policy framework that not only targets inflation but also addresses employment, as unemployment has a delayed yet substantial effect on inequality. Although the negative correlation between monetization and inequality suggests that efforts to curb inflation could inadvertently increase inequality, it also indicates that enhancing financial inclusion through increased liquidity could produce positive redistributive effects. Given the limitations of inflation targeting, including its tendency to overlook employment objectives, delayed effects on inequality, and potential contradiction with financial inclusion goals, a flexible approach to inflation targeting may be a more effective strategy for reducing income inequality in Ukraine.

This study explores the impact of digital banking channels on the operational excellence of Jordanian banks. It investigates the impact of social media, chatbots, digital wallets, and mobile applications on operational excellence in Jordanian banks, focusing on the moderating role of organizational culture. The study used a quantitative research method and a stratified random sampling technique to ensure a diverse sample of the five largest banks in Jordan, including managers and IT professionals responsible for managing digital banking operations. A total of 276 completed questionnaires were analyzed using structural equation modeling. The findings show that digital banking channels significantly contribute to operational excellence. Social media banking (β = 0.155, p < 0.05) and chatbots (β = 0.212, p < 0.01) positively impact operational excellence, while digital wallets (β = 0.301, p < 0.001) and mobile banking applications (β = 0.22, p < 0.01) also exhibit significant positive effects. The structural model explained 63% of the variance in operational excellence. Additionally, organizational culture was found to positively moderate the impact of social media banking (β = 0.20, p < 0.01), chatbots (β = 0.10, p < 0.05), and digital wallets (β = 0.16, p < 0.01) on operational excellence. However, the interaction between mobile applications and organizational culture was not significant (β = 0.078, p = 0.065).

This study aims to investigate the role of Intellectual Capital (IC), Sustainable Competitive Advantage (SCA), Duration Since Firm Establishment (DSE), and Bank Size (S) in fostering Sustainable Growth (SG) in Saudi Arabia’s banking sector. Data were collected from 2012 to 2022 from 10 commercial banks operating in the Saudi Arabian economy and listed on the Saudi Stock Exchange (Tadawul). The research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze these relationships. Findings indicate that IC significantly enhances SCA (β = 0.639, p < 0.001), which robustly promotes SG (β = 0.473, p < 0.001). Additionally, a significant direct effect of IC on SG was observed (β = 0.674, p < 0.001). A significant relationship is also observed between DSE and SG (β = 0.956, p < 0.001), highlighting the advantage of longstanding establishments in leveraging accumulated resources for growth. However, the anticipated mediating role of IC in the relationship between DSE and SG was not supported statistically (p = 0.075), suggesting the potential for other variables to influence this dynamic relation. The study underscores the pivotal role of intellectual resources in driving competitive advantages and growth sustainability in the banking industry, particularly within the rapidly evolving economic landscape of Saudi Arabia. These findings offer valuable insights for policymakers and banking institutions looking to leverage intellectual assets and competitive positioning for long-term success.

The influence of Environmental, Social, and Governance (ESG) risks on bank stability has become a critical area of study in the banking sector. This study examines the influence of ESG risks on bank stability using unbalanced panel data from 134 commercial banks in Indonesia from 2003 to 2022. Employing a fixed effects model, the findings reveal a significant negative effect of ESG risks on bank stability, where higher ESG risks significantly reduce bank stability. Specifically, government-owned banks face a greater stability decline than private banks due to their often higher exposure to regulatory and reputational pressures. Smaller banks are more adversely affected than larger ones because they lack the resources and diversification to effectively mitigate ESG risks. Additionally, non-listed banks experience a larger decrease in stability than listed banks, as the latter tend to have stricter governance structures and more robust risk management practices. These findings underscore the need for tailored risk management strategies to address ESG risks, particularly for government-owned, smaller, and non-listed banks.

Adopting metaverse technology in the banking sector is generating considerable interest. Investigating customers’ behavior is considered a primary element in adopting metaverse technologies in banking settings. This study combines the Trust Theoretic Model, Task-Technology Fit Model, and theory of planned behavior to explore consumers’ intentions to adopt metaverse Islamic mobile banking services in Jordan. Based on the Structural Equation Modeling (SEM) approach, the results using an electronic survey of 391 metaverse consumers among metaverse Islamic mobile banking services show that consumer trust based on its priors (perceived risk, perceived reputation, service quality, and perceived regulatory support) has a significant influence on consumer behavior intention at a significant P-value level (< 0.001). Furthermore, the results affirm that Task-Technology Fit plays a significant role in consumer behavior intention at a significant P-value level (< 0.001). Moreover, consumer behavior intention has a significant influence on consumers’ decision to adopt metaverse Islamic mobile banking services in Jordan at a significant P-value level (< 0.001). The findings of this study present critical insights for Islamic bank management in Jordan, assisting in developing their metaverse Islamic mobile banking, maintaining a strong relationship with consumers, and fostering consumer experiences. This study highlights the significance of adopting metaverse technologies in Islamic mobile banking services.

Uncertainty has become a critical concern for economists and policymakers worldwide, especially following the global financial crisis and the COVID-19 pandemic, both of which have underscored its significant economic implications. This study delves into the impact of banking uncertainty on loan growth, with a particular emphasis on the moderating role of bank diversification. Diversification is evaluated across three key dimensions: assets, funding sources, and income streams. The analysis is based on a panel dataset comprising 40 Vietnamese commercial banks over the period from 2010 to 2023. To address potential endogeneity, the study employs a dynamic model estimated using the generalized method of moments (GMM). The findings reveal a negative relationship between banking uncertainty and loan growth, indicating that uncertainty adversely affects banks’ lending activities. The results also highlight that banks with higher levels of diversification are better positioned to cushion the negative effects of uncertainty, with this mitigating effect being consistent across all three dimensions of diversification. These insights suggest that diversification strategies can play a vital role in enhancing banks’ resilience to economic shocks and uncertainties.

Acknowledgment
This research is part of Tan Phuc Nguyen’s PhD thesis conducted at the Ho Chi Minh University of Banking under the supervision of Van Dan Dang.

Organizational agility is a prerequisite for ensuring enhanced corporate performance in the face of technological developments. However, the supplementary role of employee relations and empowerment practices in organizational agility has not been widely explored. FinTech introduction in the banking sector has added to its already dynamic work environment.
The study aimed to investigate the effect of Employee Relationship Management (ERM) on Organizational Agility (OA) & Employee Empowerment (EE), and Employee Empowerment on Organizational Agility, and evaluate whether EE has a mediating effect on the relationship between ERM and OA.
Structural Equation Modelling over the SmartPLS4 software was used for analysis. A structured questionnaire was distributed to 200 employees in back-office operations departments of the top four banks with the highest market capitalization on the National Stock Exchange, India. Employees from branches operating in metropolitan cities were selected.
Results underscore the human asset’s prominence in the banking sector’s sustenance, showing a significant positive direct effect of EE on OA (P value: 0.000, Path Coefficient: 0.627), ERM on OA (P value: 0.025, Path Coefficient: 0.718), and on EE (P value: 0.000, Path Coefficient: 0.718). EE also shows a mediating effect in the influence of ERM over OA (P value: 0.000, Path coefficient: 0.45).
The results bridge the gap in knowledge about the prominence of the Resource-Based Theory by investigating the role of employees in enhancing the banking sector’s ability to adjust operations in line with technological advancements.

This study investigates the impact of Global Economic Policy Uncertainty (GEPU) on the performance of Islamic banking, as measured by Non-Performing Financing (NPF) and Return on Assets (ROA). Utilizing quarterly data from 2014 to 2022 across three countries – Indonesia, Nigeria, and the UAE – and employing the Autoregressive Distributed Lag (ARDL) model with a Mean Group (MG) estimator, the findings indicate that GEPU does not significantly impact NPF in either the short or long term. In the short term, GEPU has the potential to reduce ROA; however, in the long term, it positively influences the profitability of Islamic banks. Specifically, in Indonesia, the results suggest an initial increase in NPF and a decrease in ROA in the short term. Conversely, in the long term, this trend reverses, with NPF declining and ROA increasing. In Nigeria, although GEPU may elevate NPF in the short term, this negative effect dissipates over time, with profitability remaining unaffected in both timeframes. In the UAE, NPF is stable in the short term, but there are indications of a long-term increase in NPF, while profitability remains stable across both short and long terms.

Rapid advances in technology and shifting customer expectations have intensified competition in the financial industry, forcing Indonesia’s banking sector to adopt adaptive and innovative strategies to remain competitive in an increasingly complex and uncertain environment. This study investigates the role of business transformation strategy in organizational performance. Employing a quantitative approach using Structural Equation Modeling (SEM), the study analyzes data collected from 255 Branch Managers across 27 Regional Development Banks in Indonesia. The coefficient of determination for the business transformation strategy was 0.69, indicating that 69% of its variance could be explained by environmental dynamism, transformational leadership, talent development, and digital adoption. Similarly, the R2 value for organizational performance was 0.51, indicating that digital adoption and business transformation strategy accounted for 51% of its variance. The findings reveal that environmental dynamism (t-value 1.85) and talent development (t-value 1.58) do not positively affect business transformation strategy. Instead, transformational leadership (t-value 2.38) and digital adoption (t-value 4.28) positively affect business transformational strategy. Furthermore, business transformation strategy (t-value 3.10) positively affects organizational performance. Meanwhile, business transformation strategy does not mediate the influences of environmental dynamism, talent development, and transformational leadership on organizational performance but strongly mediates digital adoption. This study emphasizes that business transformation strategy is the cornerstone for aligning digital adoption and leadership approaches to drive organizational performance. This study contributes to understanding business transformation strategy in the banking industry by providing technology-driven strategic insights from Indonesian Regional Development Banks.

India’s banking sector, with its mix of public and private banks, presents diverse opportunities from an investment perspective. The relative performance of public and private sector banks is a crucial consideration when optimizing investment allocation strategies. Much academic debate has centered around the comparative performance of the public versus private sector, with conflicting findings. This study aims to analyze the financial performance of public versus private banks in India from a comparative investment perspective. To analyze the financial performance of public and private banks in India from an investment perspective, the Net Interest Margin ratio, Gross Non-Performing asset ratio, Net Non-Performing asset ratio, Current Account Savings Account (CASA) ratio, and total deposit over ten years from 2014–2023 are employed. The findings of the study state that the Net Interest Margin range of private sector banks extends from 6.06% to 2.76%, while the range of public banks begins at 2.66% and goes as low as 2.06%. The gross and net non-performing asset ratios witness higher consistency in asset quality and better risk management in the private sector. However, public sector banks, led by the State Bank of India, maintain dominance in total deposits. While both sectors perform on par in the Current Account Savings Account ratio analysis, the hold of the public sector, especially the State Bank of India, in terms of total deposits, is indisputable. The study concludes that private sector banks demonstrate superior efficiency to public sector banks in India, particularly in profitability, risk management, and asset quality.

Acknowledgment
The authors acknowledge everyone who contributed to the study, particularly Goa Business School and Goa University.

This study investigates the influence of the independent board of commissioners and audit committee on earnings management to achieve earning targets in Indonesian banking. The research sample was drawn from 33 banks listed on the Indonesia Stock Exchange from 2012 to 2022 to evaluate the time frame of the study and its relevance to current banking trends in Indonesia, as well as to examine the data sources used and their reliability. The data analysis method used in this study is a dummy variable regression model. The findings reveal significant insights into the motivations behind earnings management practices. Specifically, this study finds that managers engage in earnings management to meet profit targets, thereby signaling strong performance to stakeholders and potentially securing bonuses. Notably, the influence of corporate governance structures varies: while the independent board of commissioners demonstrates no significant effect on earnings management (p = –0.01), the audit committee plays a pivotal role, significantly influencing earnings management practices (p = –0.017). Moreover, the analysis uncovers that company size has a significant impact on earnings management (p = 0.002), while return on assets (ROA) does not. This study provides empirical evidence demonstrating the efficacy of audit committees in curbing managerial incentives for earnings management to meet targets. Furthermore, by quantifying the influence of corporate governance mechanisms and firm characteristics on earnings management, this study sheds light on key dynamics in the Indonesian banking industry.