Factors Affecting the Profitability of Banking Companies Listed in Indonesia Stock Exchange

Santioso, Linda; Daryatno, Andreas Bambang

doi:10.2991/aebmr.k.220501.069

Cited by 2 publications

(3 citation statements)

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“…This is not in line with research conducted by [15] but is in line with the study of [13], which shows that the CAR ratio has no significant effect on the financial performance of UAE Commercial Banks as described by ROE and ROA. Research in Indonesia [21] shows similar results where CAR does not significantly affect ROA. This indicates that capital not optimally utilized does not affect banking profitability.…”

Section: H 2 : There Is An Effect Of Capital Adequacy Ratio (Car) On ...mentioning

confidence: 57%

“…This is not following research conducted by [15], which states that NPL has a significant negative effect on bank financial performance, but a following study conducted in Bangladesh [25] which shows the results of NPL has a negative but insignificant impact on ROA, as well as the results of research conducted by [22] which states that NPL has a positive but insignificant effect on ROE. Another [21] study shows that NPL does not significantly affect ROE and ROA. This is because the commercial banks used as research samples have an NPL ratio ≤ 5%, in other words, they have low and measurable credit risk, so they have no significant effect on ROE and ROA.…”

Section: H 4 : There Is An Effect Of Non-performing Loan (Npl) On Ban...mentioning

confidence: 96%

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The Effect of Corporate Social Responsibility, Credit Risk, and Leverage on the Financial Performance of Commercial Banks in Indonesia

Mahisi

Saputra

Leon

et al. 2023

IJSMS

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This study examines the relationship between corporate social responsibility, credit risk, and leverage with the performance of commercial banks in Indonesia. Hypothesis testing is conducted to explore the influence of independent variables, namely Corporate Social Responsibility (CSR), Credit Risk described by Capital Adequation Ratio (CAR), Loan To Deposit Ratio (LDR), and Non-Performing Loan (NPL), and Leverage defined by Debt to Asset Ratio (DR), on the dependent variable, namely Financial Performance measured using ROA and ROE. In contrast, Bank Size is used as a control variable. The sample of this study includes 33 conventional commercial banks listed on the Indonesia Stock Exchange (IDX), using secondary data obtained from financial reports and bank sustainability reports for six years (2016-2021). With the multiple regression method on panel data using the Eviews 12 tool, the results of this study indicate that the CSR variable has a significant negative effect on ROE and has no significant impact on ROA, CAR has no significant effect on ROE or ROA, LDR has a significant negative impact on ROE and ROA, NPL has no significant effect on ROE or ROA, and DR has a significant positive impact on ROE but has no significant effect on ROA. This study can provide empirical evidence to managers, investors, and regulators to better understand CSR, leverage, and bank risk in formulating better policies and careful decision-making.

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Section: H 2 : There Is An Effect Of Capital Adequacy Ratio (Car) On ...mentioning

confidence: 57%

Section: H 4 : There Is An Effect Of Non-performing Loan (Npl) On Ban...mentioning

confidence: 96%

The Effect of Corporate Social Responsibility, Credit Risk, and Leverage on the Financial Performance of Commercial Banks in Indonesia

Mahisi

Saputra

Leon

et al. 2023

IJSMS

View full text Add to dashboard Cite

show abstract

“…Penyampaian informasi ini bertujuan agar pihak eksternal dapat mengetahui prospek perusahaan di masa mendatang dan kemampuan manajemen mengelola perusahaan. Penyampaian informasi mengenai kualitas laba melalui pelaporan keuangan di dalam perusahaan sebagai sinyal bagaimana kinerja keuangan perusahaan (Buana & Wahyudin, 2016;Santioso & Daryatno, 2021).…”

Section: Signalling Theoryunclassified

Risiko Kredit Dan Kualitas Laba Sebagai Faktor Penentu Kinerja Keuangan Sektor Perbankan Di Bei

Ida,

Veronica

2023

JMIEB

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Perlambatan kinerja sektor perbankan di tahun 2020 akibat pandemi COVID-19, namun pemulihan ekonomi yang kuat dan berkelanjutan membutuhkan dukungan sektor keuangan, terutama sektor perbankan. Faktor risiko kredit dan kualitas laba perlu dipertimbangkan dapat memengaruhi kinerja keuangan perbankan. Penelitian ini bertujuan untuk menguji pengaruh risiko kredit dan kualitas laba terhadap kinerja keuangan sektor perbankan di Bursa Efek Indonesia (BEI) selama periode 2016-2020. Hasil pengambilan sampel menggunakan metode purposive sampling terdapat 31 bank yang menjadi sampel dengan periode pengamatan 5 tahun sehingga terdapat 155 data observasi. Analisis data menggunakan regresi panel dengan bantuan EViews. Hasil penelitian dengan menggunakan model fixed effect diperoleh risiko kredit dan kualitas laba berpengaruh negatif terhadap kinerja keuangan sektor perbankan. pihak perbankan perlu mengevaluasi kembali kebijakan pemberian kredit yang didukung oleh kualitas kredit yang baik agar mengurangi risiko kredit sehingga dapat meningkatkan laba dan kinerja perbankan. Selain itu pihak perbankan perlu mengevaluasi kembali laba yang dapat menyebabkan kualitas laba perusahaan menurun. The banking sector's performance slowed down in 2020 due to the COVID-19 pandemic, but a strong and sustainable economic recovery requires support from the financial sector, especially the banking sector. Credit risk factors and earnings quality need to be considered to affect banking financial performance. This study aims to analyze the effect of credit risk and earnings quality on the financial performance of the banking sector on the Indonesia Stock Exchange (IDX) during the 2016-2020 period. The results of taking samples using the purposive sampling method were 31 banks that were sampled with an observation period of 5 years so there were 155 observational data. Data analysis using panel regression with the help of EViews. The results of research using the fixed effect model show that credit risk and earnings quality have a negative effect on the financial performance of the banking sector. banking parties need to re-evaluate credit policies that are supported by good credit quality in order to reduce credit risk so as to increase bank profits and performance. Besides that, banks need to re-evaluate profits which can cause the quality of company profits to decline.

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Factors Affecting the Profitability of Banking Companies Listed in Indonesia Stock Exchange

Cited by 2 publications

References 0 publications

The Effect of Corporate Social Responsibility, Credit Risk, and Leverage on the Financial Performance of Commercial Banks in Indonesia

The Effect of Corporate Social Responsibility, Credit Risk, and Leverage on the Financial Performance of Commercial Banks in Indonesia

Risiko Kredit Dan Kualitas Laba Sebagai Faktor Penentu Kinerja Keuangan Sektor Perbankan Di Bei

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