The Influence of Capital Adequacy Ratio and Non-Performing Loan on Profitability of Commercial Banks Listed on the Indonesia Stock Exchange in 2017-2019

DJAYA, Nathaniel Karel; Yanuarti, Ika

doi:10.24818/beman/2021.11.4-06

Cited by 4 publications

(4 citation statements)

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“…Second, tier 2 (supplement) capital provides debt capital instruments, convertible debt, inter-mediate term preferred stock, etc. With the capital adequacy standard set, the greater the capital bank raises, the banking business can minimize the risk of loss and carry out its operational activities to increase business profitability (Djaya and Yanuarti, 2021). Ha1: Capital Adequacy Ratio (CAR) has a significant positive effect on profitability…”

Section: Capital Adequacy Ratiomentioning

confidence: 99%

Factors Affecting Profitability on Banking Companies Listed on the Idx

Melvina,

Ekadjaja

2023

ijaeb

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This study aims to obtain empirical evidence about the effects of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Net Interest Margin (NIM), Current Account Saving Account (CASA), and Operating Expenses to Operating Income (BOPO) on the profitability of banking companies listed on the Indonesia Stock Exchange (IDX) in 2017-2020. This research uses 27 banking companies selected using purposive sampling method. The research data will be processed using the EViews 9.0 program. The results of this research indicate that the NIM has a positive and significant effect on profitability, BOPO has a negative and significant effect on profitability, while CAR, NPL, and CASA have no significant effect on profitability.

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Section: Capital Adequacy Ratiomentioning

confidence: 99%

Factors Affecting Profitability on Banking Companies Listed on the Idx

Melvina,

Ekadjaja

2023

ijaeb

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“…However, Hakuduwal(2021) affirmed that the capital ratio of Nepalese commercial banks is not linked with profitability. Additionally, Djaya(2019) examine the influence of capital ratio on profitability of Indian banks. The study found an insignificant positive association between capital adequacy and the profitability of Indian banks.…”

Section: Capital Adequacy and Profitabilitymentioning

confidence: 99%

Firm-Specific Determinants of Profitability of Listed Commercial Services Companies in Kenya and Tanzania

Lyimo,

Walter

2023

PAJBM

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The issue on whether firm-specific determinants such as capital adequacy, financial leverage, company liquidity and firm size influence the profitability of listed commercial services companies is still debatable to date. Therefore, this study examines the firm-specific determinants of profitability of listed commercial services companies at Dar es Salaam Stock Exchange (DSE) and Nairobi Stock Exchange (NSE) in Tanzania and Kenya respectively. The study used data extracted from annual reports of eleven commercial services companies from 2015 to 2020 yielding 66 firm-year observations. Moreover, panel data regression analysis specifically a random effect estimator was employed to estimate firm-specific determinants of profitability of commercial services companies listed in Tanzania and Kenya. The study found out that capital adequacy was significantly positively linked to the profitability of listed commercial services companies at DSE and NSE. Likewise, the study revealed that firm size was significantly positively associated with the profitability of commercial services listed at DSE and NSE. Moreover, the study uncovered an insignificant positive association between profitability and both financial leverage and liquidity of commercial services companies listed at DSE and NSE. The results suggested that corporate managers are advised to increase investment in equity through selling equities to the general public and private shareholders so as to increase profitability. Furthermore, corporate managers are advised to increase firm size to enhance profitability.

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“…LPD tidak menggunakan seluruh potensi modalnya dalam meningkatkan profitabilitas, sehingga menyebabkan rasio CAR tidak menjadi faktor yang mempengaruhi profitabilitas LPD secara signifikan. Hasil penelitian ini sejalan dengan penelitian sebelumnya yang dilakukan oleh Widyastuti et al, (2017), Djaya & Yanuarti (2021), Kusumastuti & Alam (2019), serta Zaidanin & Zaidanin (2021) yang menemukan hasil bahwa kecukupan modal tidak berpengaruh terhadap profitabilitas.…”

Section: Hasil Dan Pembahasanunclassified

Kecukupan Modal, Loan to Deposit Ratio, Pertumbuhan Nasabah dan Profitabilitas

Puspaningrum,

Diantini

2023

E-Jurnal Akuntansi

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The importance of the existence of LPDs in traditional villages requires LPDs to always maintain the stability of their profit growth, so it is important for LPDs to know the factors that influence their profitability. The research aims to analyze and determine the influence of capital adequacy, loan to deposit ratio and customer growth on LPD profitability in Denpasar City during the 2019-2021 period. The population in the study were all LPDs in Denpasar City with a total sample of 34 LPDs taken using the purposive sampling method. The research uses secondary data, namely financial reports obtained from LPLPD Denpasar City, and the data is analyzed using multiple linear regression analysis. The research results show that capital adequacy and customer growth have no effect on LPD profitability in Denpasar City, the loan to deposit ratio has a positive effect on LPD profitability in Denpasar City. Keywords: Capital Adequacy; Loan to Deposit Ratio; Customer Growth; Profitability

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The Influence of Capital Adequacy Ratio and Non-Performing Loan on Profitability of Commercial Banks Listed on the Indonesia Stock Exchange in 2017-2019

Cited by 4 publications

References 0 publications

Factors Affecting Profitability on Banking Companies Listed on the Idx

Factors Affecting Profitability on Banking Companies Listed on the Idx

Firm-Specific Determinants of Profitability of Listed Commercial Services Companies in Kenya and Tanzania

Kecukupan Modal, Loan to Deposit Ratio, Pertumbuhan Nasabah dan Profitabilitas

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