The Influence of Firm Size and Firm Age on the Financial Performance of Banks Listed on the Indonesia Stock Exchange (IDX) in 2024–2025

Abstract

Financial performance is a crucial indicator for assessing a banking company's ability to generate profit and maintain business sustainability. However, prior research regarding the impact of firm size and firm age on financial performance has yielded inconsistent findings. This study aims to analyze the influence of firm size and firm age on financial performance—proxied by Return on Assets (ROA)—among banking companies listed on the Indonesia Stock Exchange (IDX) during the 2024–2025 period. A quantitative approach was employed using secondary data obtained from the annual financial reports of the banking companies. The study population comprised 48 banking companies; a saturated sampling technique was used, meaning the entire population served as the sample, resulting in 96 observations. Data analysis was conducted using panel data regression with the aid of EViews 13 software. The results indicate that firm size has a negative and significant effect on financial performance, whereas firm age has a positive and significant effect. Furthermore, firm size and firm age simultaneously exert a significant influence on financial performance. The study concludes that a company's operational experience plays a role in enhancing financial performance, whereas an increase in firm size is not necessarily accompanied by an increase in profitability.