Assessing the moderating effect of IT innovation on the interplay among company size, financial performance, and company value

This study investigates the impact of company size on financial performance and company value, with a particular focus on the moderating role of IT innovation in the Indonesian commercial banking sector. Utilizing data from Category 4 commercial banks listed on the Indonesia Stock Exchange from 2016 to 2022, the study employs the Partial Least Squares (PLS) method facilitated by the WarpPLS package to analyze these relationships. The results demonstrate that both company size significantly enhance financial performance and company value. Furthermore, IT innovation is found to significantly moderate these effects, amplifying the positive impacts on company value. Specifically, IT innovation strengthens the relationship between financial performance and company value, reflecting its crucial role in modern banking operations. This research provides empirical evidence on the strategic importance of IT innovation in enhancing financial determinants and offers recommendations for integrating technological advancements in banking strategies to improve overall performance and value. The findings underscore the transformative potential of IT innovation in the financial sector, particularly in emerging markets like Indonesia. Recommendations for future research include exploring the long-term impacts of IT innovation on banking performance and its broader economic implications.