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The Influence of Asset Management Risk on Bank’s Financial Performance in Indonesia Berlian Zervi Pratiwi, Enggar; Syakila Salsabila Nasution; Farah Margaretha Leon
JURNAL MANAJEMEN MOTIVASI Vol 22 No 2 (2026): Jurnal Manajemen Motivasi
Publisher : Universitas Muhammadiyah Pontianak

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29406/jmm.v22i2.9091

Abstract

By taking into account the capital adequacy ratio, bank size, and financial leverage, this study seeks to examine the impact of asset management risk on the financial performance of Indonesian banks. Purposive sampling was used to choose 32 banks that were listed on the Indonesia Stock Exchange between 2020 and 2024. Panel data regression was used to analyse the data. The findings indicate that while financial leverage has a large negative impact on financial performance, interest rate risk, credit risk, and the capital adequacy ratio have a considerable beneficial impact. The financial performance of banks is not significantly impacted by liquidity risk or bank size. Keywords: Capital Adequacy Ratio; Credit Risk; Financial Performance; Interest Rate Risk; Liquidity Risk