| Summary: | The objectives of this research is to analyze the influence of Capital
Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loan
(NPL), and Net Interest Margin (NIM) to Return on Asset (ROA) as a proxy
of profitability of the banking company listed on the Indonesia Stock
Exchange (IDX) in the period 2007 to 2009. Data used in this study obtained
from the annual published financial statements of banking companies IDX is
listed on the period 2007 to 2009, published by each bank through the official
website of the Indonesian Stock Exchange. After passing through the stages of a
purposive sample, there were 22 banking companies that listed on the IDX is
feasible to use.
The results show that NIM and LDR variables have a significant effect on
ROA, NIM has a Positive effect and LDR have a negative effect. Meanwhile CAR
and NPL have no significant effect on ROA, the CAR and NPL have a positive
effect. From both ratio that have a significant effect with ROA, LDR has a greater
influence, with value of coefficient is -1.170. It is expected the bank to pay
attention to liquidity to perform their intermediation function. Then from the ratio
that have not significant with ROA (CAR and NPL) due at the time of study
economic conditions in poor condition, so that the intermediary function
of banks is not running well.
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