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Banking in Indonesia has experienced a difficult period since the financial crisis in 1997 that directly or indirectly affected the banking sector. Many private banks have to be liquidated. The banking industry has decreased and stagnated due to many problems, such as decreased profitability, lack of capital and non-performing loans. National banks consolidate to improve financial performance, one of the ways to do is to merge and acquire. This study aims to test and prove empirically banks that do mergers and acquisitions: (1) Does firm size directly affect the efficiency and financial performance. (2) Whether efficiency directly affects financial performance (3) Does firm size indirectly affect financial performance mediated by efficiency. Theoretically, the result of this research is expected to enrich and complete the repertoire of science in the field of management science, especially the theory of financial management of banking, so it can be useful for academics and practitioners. The number of commercial banks in Indonesia reached 118 banks. The population of this research is commercial banks that merged and acquired post-1997 economic crisis until 2010. The sample of the study was taken from all banks that merged and acquired as many as 14 banks. Sampling using saturated sampling method (census). The design of this research using explanatory approach. Data analysis method used in hypothesis testing is path analysis and using Structural Equation Model analysis tool with WarpPLS 5.0 program. The results of this research indicate that: (1) The firm size directly affects the efficiency, but does not directly affect the financial performance. (2) efficiency directly affects financial performance. (3) The firm size indirectly affect the financial performance is mediated by efficiency. The conclusion of this research is efficiency has a dominant role to improve financial performance, while the novelty of this research is entering efficiency as mediation for influence of firm size to financial performance of banking that do merger and acquisition.

Continuing failures of financial capitalism across borders have led corporation to develop a more balanced economic growth model of transformational entrepreneurship that emphasises both short-term economic and longer-term social impacts. The model encourages entrepreneurial activities that bring major changes in the related markets and industries, as well as changes in society and culture. At the corporate level, transformational entrepreneurship prepares employees for any potential changes induced by a dynamic environment; it also improves the psychological capital of individual employees, and effective transformational entrepreneurship can eventually accelerate performance. The purpose of this study is to investigate (1) the direct and indirect effects of transformational entrepreneurship on readiness for change, psychological capital and employee performance, and (2) how the effects to readiness for change and psychological capital influence employee performance. The study data were collected using questionnaires completed by employees in 257 branches of a state-owned bank with locations throughout Indonesia. The data were analysed using the structural equation model. The results show that transformational entrepreneurship significantly and positively influences readiness for change, psychological capital, and employee performance and that readiness for change and psychological capital significantly and positively influences employee performance. Additionally, the effect of transformational entrepreneurship on employee performance is more significant if it is related to psychological capital than to readiness for change or to aspects of employee performance unrelated to transformational entrepreneurship. These findings enrich our understanding of transformational entrepreneurship and its value related to the direct and indirect effects on variables such as readiness for change, psychological capital and employee performance., Competing Interests: No competing interests were disclosed., (Copyright: © 2021 Gunawan M et al.)