Purpose -This study aims to analyze the effect of stability, size, financial performance and macroeconomic variables on the profitability of Islamic Rural Banks (BPRS) in Indonesia.Methodology -This study uses panel data consisting of 82 BPRS from December 2012 to December 2018. This study uses a dynamic model using GMM (General Method of Moments) developed by Arellano & Bover (1995) and Blundell & Bond (1998). GMM is used to describe the actual conditions in the analysis of profitability of Islamic Rural Banks.Findings -The findings of this study indicate that the stability and size of the BPRS have a negative effect on the level of ROA and ROE. Further, BAC has a positive effect on ROA but it has a negative effect on ROE. While the deposit structure (DS) is found to have a positive effect on ROA and ROE, FDR and the total deposit (DAR) is found to have a positive effect on both ROA and ROE. Meanwhile, the capital structure does not show a significant value on ROA. On the other hand, economic growth (GDP) and inflation (INF) do not show a significant relationship to ROA, but inflation is positively related to ROE.Originality -This study is to determine the effect of the stability and the size of BPRS on its profitability. This study uses 6 models to obtain a consistent variation of variables in influencing profitability.
Winner-loser anomaly explained that the shares are initially generate extreme positive abnormalreturn (winner) or the extreme negative abnormal returns (loser) will experience a reversal,especially for the loser stocks that outperform the stock winner.The objective of this paper is to explore and analyze overreaction for stocks which include calculatedIslamic Index (Jakarta Islamic Index) for period 2005 - 2006. This paper used method ofDe Bond — Thaler (1985), Dissainake (1997), Adler Manurung and Pondra Permana (2005) toselect sample. Winner and loser portfolio was formed based their return and also used marketadjusted excess returns.The results show overreaction phenomenon occurred several times in the three-month observationperiod (see calculation of CAAR). But these reactions do not have a high level of consistencybecause overreactions lasted only one time so as not to represent other periods, eventhe pickles winner overreaction does not show any symptoms (all grades pickles winner positivethree months period). Statistical analysis showed no anomaly overreactions on three-monthsobservation period.Research using six monthly observation periods overreaction symptoms occur randomly in allthree replications. But the significance test results again showed the lack of overreaction at theJII. So it can be concluded that the hypothesis of overreaction in the Jakarta Islamic Index inthe period January 2005 to December 2006 can not be proven statistically. Although there aresymptoms of overreaction, the reactions are not consistent and not significant.Keyword: overreaction, Jakarta Islamic Index ( JII), return, winner, losser, market adjusted return, cumulative abnormal Return.
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