Macro variables and bank peculiar variable on profitability: empirical study of islamic banking in Indonesia

TA Syah, AY Kharismasyah… - … Journal of Information …, 2021 - search.proquest.com
International Journal of Information, Business and Management, 2021search.proquest.com
The purpose of this study is to analyze the impact of internal and external factors that affect
profitability. Internal factors are excluded, NPF, FDR, and BOPO, while external factors
include macro variables such as Gross Domestic Product, Inflation, Exchange Rate, and BI
rate. Return on assets (ROA) and return on equity (ROE) are used to measure profitability.
Data were collected for seven (7) variables from 14 sharia commercial banks in Indonesia,
which contained five (5) state-owned Islamic banks and nine (9) private Islamic banks. This …
Abstract
The purpose of this study is to analyze the impact of internal and external factors that affect profitability. Internal factors are excluded, NPF, FDR, and BOPO, while external factors include macro variables such as Gross Domestic Product, Inflation, Exchange Rate, and BI rate. Return on assets (ROA) and return on equity (ROE) are used to measure profitability. Data were collected for seven (7) variables from 14 sharia commercial banks in Indonesia, which contained five (5) state-owned Islamic banks and nine (9) private Islamic banks. This study uses secondary data from 2015 to 2018, taken from the annual report of the Indonesian bank, sharia banking statistics belonging to the Financial Services Authority (OJK), and the Central Statistics Agency (BPS) of the Republic of Indonesia. Data analysis using SPSS software to determine the results of descriptive analysis, classic assumption test, model feasibility test, and linear regression analysis. The results showed that BOPO had a significant positive effect on profitability in the second model (ROA & ROE). NPF has a significant negative effect on ROA, and FDR has a significant positive effect on ROE.
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