Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange
Research aims: This study examined the determinants of profitability of state-owned banking companies on the Indonesia Stock Exchange, including Adequacy Ratio (CAR), Operating Costs and Operating Income (OCOI), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL). Design/Methodology/Approach:...
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| Format: | Article |
| Language: | English |
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Universitas Muhammadiyah Yogyakarta
2022-09-01
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| Series: | Journal of Accounting and Investment |
| Subjects: | |
| Online Access: | https://journal.umy.ac.id/index.php/ai/article/view/15246 |
| _version_ | 1811192312708988928 |
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| author | Imam Muhtadin Faris Rahman Zain Edi Purwanto Tiyas Puji Utami |
| author_facet | Imam Muhtadin Faris Rahman Zain Edi Purwanto Tiyas Puji Utami |
| author_sort | Imam Muhtadin |
| collection | DOAJ |
| description | Research aims: This study examined the determinants of profitability of state-owned banking companies on the Indonesia Stock Exchange, including Adequacy Ratio (CAR), Operating Costs and Operating Income (OCOI), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL).
Design/Methodology/Approach: This study is quantitative research with a type of exploratory. The population in this study was all state-owned banks listed on the Indonesia Stock Exchange for the period 2012-2018 and used the saturated sample technique, or the entire population was taken as a sample. The data analysis method employed in this study was a panel data regression model (a combination of time series and cross section) utilizing the EViews 9.
Research findings: The results in this study revealed that the CAR and OCOI had a negative effect on bank profitability as proxied by ROA. Meanwhile, LDR and NPL did not affect the profitability of state-owned banks.
Theoretical contribution/Originality: The research contributes to the literature and practice. Practically, these results can be used for management to maintain the banking system's internal condition in pursuing profitability. |
| first_indexed | 2024-04-11T23:50:34Z |
| format | Article |
| id | doaj.art-24485ebb63b74517a10774415437c8c8 |
| institution | Directory Open Access Journal |
| issn | 2622-3899 2622-6413 |
| language | English |
| last_indexed | 2024-04-11T23:50:34Z |
| publishDate | 2022-09-01 |
| publisher | Universitas Muhammadiyah Yogyakarta |
| record_format | Article |
| series | Journal of Accounting and Investment |
| spelling | doaj.art-24485ebb63b74517a10774415437c8c82022-12-22T03:56:29ZengUniversitas Muhammadiyah YogyakartaJournal of Accounting and Investment2622-38992622-64132022-09-0123357658710.18196/jai.v23i3.152466200Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock ExchangeImam Muhtadin0Faris Rahman Zain1Edi Purwanto2Tiyas Puji Utami3Department of Management, Faculty of Economics and Business, Universitas Muhammadiyah Jakarta, Jakarta Capital Special RegionDepartment of Management, Faculty of Economics and Business, Universitas Muhammadiyah Jakarta, Jakarta Capital Special RegionUniversitas Terbuka, South Tangerang, BantenDepartment of Accounting, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Special Region of YogyakartaResearch aims: This study examined the determinants of profitability of state-owned banking companies on the Indonesia Stock Exchange, including Adequacy Ratio (CAR), Operating Costs and Operating Income (OCOI), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL). Design/Methodology/Approach: This study is quantitative research with a type of exploratory. The population in this study was all state-owned banks listed on the Indonesia Stock Exchange for the period 2012-2018 and used the saturated sample technique, or the entire population was taken as a sample. The data analysis method employed in this study was a panel data regression model (a combination of time series and cross section) utilizing the EViews 9. Research findings: The results in this study revealed that the CAR and OCOI had a negative effect on bank profitability as proxied by ROA. Meanwhile, LDR and NPL did not affect the profitability of state-owned banks. Theoretical contribution/Originality: The research contributes to the literature and practice. Practically, these results can be used for management to maintain the banking system's internal condition in pursuing profitability.https://journal.umy.ac.id/index.php/ai/article/view/15246capital adequacy ratiooperating costs and operating incomeloan to deposit rationon-performing loanprofitability |
| spellingShingle | Imam Muhtadin Faris Rahman Zain Edi Purwanto Tiyas Puji Utami Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange Journal of Accounting and Investment capital adequacy ratio operating costs and operating income loan to deposit ratio non-performing loan profitability |
| title | Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange |
| title_full | Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange |
| title_fullStr | Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange |
| title_full_unstemmed | Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange |
| title_short | Determinants of Banking Profitability: The Case of State-Owned Banks Listed on the Indonesia Stock Exchange |
| title_sort | determinants of banking profitability the case of state owned banks listed on the indonesia stock exchange |
| topic | capital adequacy ratio operating costs and operating income loan to deposit ratio non-performing loan profitability |
| url | https://journal.umy.ac.id/index.php/ai/article/view/15246 |
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