Purpose This study aims to examine the influence of internal and external factors on the credit risk (represented by nonperforming financing [NPF]) of Indonesian Sharīʿah rural banks (SRBs) – a type of Islamic bank that provides Islamic financial services especially to small and medium businesses in Indonesia. Internal variables comprise capital adequacy ratio (CAR), financing to deposit ratio (FDR), return on assets (ROA), operating expense ratio (OER), financing to value (FTV) and profit and loss sharing (PLS) financing ratio. External variables comprise inflation, economic growth and interest rate. Design/methodology/approach The study uses the annual reports of SRBs in Indonesia as secondary data for the years 2010–2019. Auto regressive distributed lag (ARDL) is used as the analysis method to examine the short-run and long-run relationships between the variables. Findings The findings indicate that four variables experienced a lag in the short run, namely, NPF, inflation, CAR and PLS, with different results recorded for each of the variables. Furthermore, the long-run results show that CAR and ROA influence the NPF of SRBs positively, whereas inflation and PLS have a negative influence on NPF. The rest of the variables – notably economic growth, interest rate, FDR, FTV and OER – do not have an influence on NPF in SRBs. Research limitations/implications The level of NPF in SRBs exceeds the provision of the Central Bank of Indonesia. The findings are expected to have implications for SRBs and the regulator to consider and to manage the factors related to NPF properly due to the important role of SRBs in small and medium businesses’ development. Originality/value This study measures the determinants of NPF using internal and external variables, including the addition of a dummy variable, notably FTV. This study also uses ARDL to analyze the financial policies involving data at the present time and lagged time.
Health, safety and the working environment are of paramount importance, especially in the high-risk environments found at facilities in the oil and gas industry, where hazards are inevitable and accidents may lead to regrettable situations such as explosions, oil spills and other disasters. The high number of accidents and disasters at such facilities bring safety-related matters to the fore. The complexity of the communication process is very often underestimated, where failures in communication could lead to major disasters. This paper investigates the role of communication management and the organizational communication climate and their impact on incidents and disaster avoidance. This study embarks on a quantitative approach involving 260 personnel from high-risk workplaces at oil and gas facilities, based on purposive sampling. Hypotheses were tested using PLS-SEM to identify causal relationships and for mediation analysis. The findings of this study show that communication management and the organizational communication climate have a significant impact on disaster avoidance. The organizational communication climate is also found to be a significant mediator for the relationship between communication management and disaster avoidance. Communication management and the organizational communication climate need to be enhanced and to be integrated with other technology and innovation to improve safety regulation adherence in the oil and gas industry.
In a local government, it is important to know the areas that have the potential to be the center of growth. Because with the determination of the growth center, it will be easier in
This research uses secondary data as data sources. This research learnsthe effect ofregional gross domestic product, working capital loans, and province minimum wage towards SMEs developments in Daerah Istimewa Yogyakarta province. Models of analysis that used are analysis tools data panel (pooled data) as data processing tool which data panel is a combination between time series (time-series data) from 2007 -2011 and cross section (cross-section data) in five regencies in Daerah Istimewa Yogyakarta province. Statisticaltest uses three models those are common effect, fixed effect, random effect. The result of analysis data shows RGDP and working capital loans significantly take positive effect toward SMEs in Daerah Istimewa Yogyakarta province where RGDP grows higher followed by the econimic development so as SMEs grow higher nor working capital loans which released by commercial bank more bigger so as SMEs grow higher. Contrast with province minimum wage which is makes significanly negative effect toward SMEs, which is possibility caused by the bigger province minimum wage becomes constraints toward cost ofproduction but conversely the smaller province minimum wage will push the development of SMEs in Yogyakarta.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.