THE EFFECT OF CREDIT RISK, COMPANY SIZE, AND PROFITABILITY ON CAPITAL ADEQUACY RATIO OF BANKS LISTED ON THE INDONESIA STOCK EXCHANGE IN INDONESIA
THE EFFECT OF CREDIT RISK, COMPANY SIZE, AND PROFITABILITY ON CAPITAL ADEQUACY RATIO OF BANKS LISTED ON THE INDONESIA STOCK EXCHANGE IN INDONESIA
Author(s): Yulia AIda, Al Mughni Akbar Tarvi, Rulfah DaudSubject(s): Economy, Financial Markets
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: capital adequacy ratio; net interest margin; non performing loas; return on assets; size;
Summary/Abstract: This study aims to determine the effect of Non Performing Loans, Size, Net Interest Margin, and Return on Assets on the capital adequacy ratio of banks listed on the Indonesia Stock Exchange. This study uses panel data, the sample in this study amounted to 17 banks with an observation period from 2015-2019. The analytical method used in this research is multiple linear regression. The results of the study partially show that non-performing does not have a significant effect on capital adequacy ratio, size does not have a significant effect on capital adequacy ratio, net interest margin has a significant effect on capital adequacy ratio, and return on assets has a significant effect on the capital adequacy ratio. Simultaneous test results show that the Non Performing Loan, Size, Net Interest Margin, and Return on Assets have a significant effect on the capital adequacy ratio.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 15/2023
- Issue No: 1
- Page Range: 7-25
- Page Count: 19
- Language: English
- Content File-PDF