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THE EFFECT OF BANK RISK RATIO AND EARNING ASSET QUALITY ON PROFITABILITY IN BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE Indrayani, Indrayani; Murhaban, Murhaban; Nurhasanah, Nurhasanah; Zulfikar, Zulfikar; Balqis, Fathia; Irpandi, Wira
International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS) Vol. 2 No. 6 (2022): December
Publisher : CV. Radja Publika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54443/ijebas.v2i6.508

Abstract

The purpose of this study is to determine the effect of bank risk ratios (represented by credit risk, operational risk and liquidity risk) and the quality of earning assets on profitability in banking companies listed on the Indonesia Stock Exchange for the 2016-2021 period. This study uses data analysis techniques, namely multiple linear regression. The population used in this study were all banking companies listed on the Indonesia Stock Exchange for the 2016-2021 period, the sample used in this study was 15 banks. Based on the results of the analysis conducted, it can be concluded that credit risk represented by Non Performing Loans (NPL) has a significant negative effect on profitability, operational risk represented by Operating Expenses on Operating Income (BOPO) has a significant negative effect on profitability, liquidity risk represented by Loan to deposit Ratio (LDR) has no effect on profitability, and the quality of earning assets has no effect on profitability. Credit risk, operational risk, liquidity risk and earning asset quality significantly affect profitability by 74.4%, while the remaining 25.6% is influenced by factors not included in the research model.
Co-Authors A.A. Ketut Agung Cahyawan W Abdurrahman Ridho Adityo, Hilman Dwi Aiyub Aiyub Al Munawir Al Zuhri Alisman, Alisman Almunawir, Almunawir Andiini, Mirna Ria Andika Aprilianto, Andika Andini, Mirna Ria Andria Zulfa Anhar Fazri Aris Munandar Aulia Rahman Balqis, Fathia Bilal, Muhammad Chairunnisa Chairunnisa Chairunnisa Chairunnisa Chandra, Radja Aditya Cut Mutia, Cut Darmadi, Herry Defry Basrin Desi Maulida DIAN FEBRIANTI Ellidianti, Rossy Novia Farizal, Teuku Fatih Abdillah, Muhammad Futri Syam HAQ, Ashanul Hata, Achmad Hendra Raza Herdi Susanto Herri Darsan Husdayanti, Noviana Ikhsan Ikhsan Ikram, Syafrizal Ilham Azmy Ilham Juliwardi INDRAYANI INDRAYANI INDRAYANI INDRAYANI Irpandi, Wira Johar Nur Iin juliana, rena Juliawardi, Ilham Junaidi, Juna Junai Karti, Karti Kerihi, Anthon Simon Yohanis Khatami, Muhammad Kurnia, Dian Masykur, Masykur Maulida, Cut Yanti Maulina, Putri mauludi, mauludi Merawati, Merawati Mirza Adia Nova Muammar Khaddafi Muh Nurtanzis Sutoyo Muhammad Ardiansyah Muhammad Hambal Muhammad Hambal Muhammad Hasyem Mukhlizar, Mukhlizar Muzakir Muzakkir Muzakkir Naz’aina Naz’aina Naz’aina Naz’aina Nurhasanah Nurhasanah Nurya Savitri, Agustin Pogek Pogek Pradityo Utomo Raudhatun Nafisah Razali Razali Rendra Trisyanto Surya Ridha, Ismu Ridho, Abdurrahman Rita Fazlina Ruslan Ruslan Said Fadhlain Samwil, Samwil Sanusi Sanusi Sapriyadi Saputra Lubis, Doni Sari, Pipi Ida Sempena, Iwan Doa Sofia Sofia, Sofia Suhendra, Rivansyah Sujahri, Irfan SURYA, Rendra Trisyanto Suryadi Suryadi Suryadi Suryadi Syari, Zammiq Teuku Reza Ferasyi Teuku Reza Ferasyi Ti Aisyah Wijono, Hani Adi Yudha Fahrimal Yusniati Yusniati