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Spearman and Pearson Correlation Tests: Analyzing Negative and CAR Correlation in Indonesian Islamic Finance (2021-2023) Widodo, Prima Ariyo; Isman, I; Hidayat, Syamsul; Risdayani, R
Proceeding ISETH (International Summit on Science, Technology, and Humanity) 2023: Proceeding ISETH (International Summit on Science, Technology, and Humanity)
Publisher : Universitas Muhammadiyah Surakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/iseth.5327

Abstract

This study examines the correlation between Non-Performing Financing (NPF) and Capital Adequacy Ratio (CAR) in Indonesian Islamic finance from 2021 to 2023. The study employed Pearson and Spearman correlation tests to examine the correlation between NPF and CAR in Indonesian Islamic finance from 2021 to 2023. The significance was determined by Sig. (2-tailed) values (p < 0.05), accepting H0 and rejecting H1. The Pearson (r) and Spearman (ρ) coefficients indicated a strong negative correlation. The robust methodology reinforces the findings on the intricate dynamics between NPF and CAR in the specified financial data. The findings, obtained through Pearson and Spearman correlation tests, reveal a significant negative correlation (p < 0.05), indicating an inversely proportional relationship. The strong negative correlation suggests that as NPF increases, CAR decreases, and vice versa. The study provides valuable insights into the dynamic interplay between NPF and CAR in Islamic financial data.
Declining NPF Threatens Islamic Finance Stability: Unveiling Negative Correlation with CAR (2021-2023) through Robust Statistical Analysis Isman, I; Widodo, Prima Ariyo; Risdayani, R
Proceeding ISETH (International Summit on Science, Technology, and Humanity) 2023: Proceeding ISETH (International Summit on Science, Technology, and Humanity)
Publisher : Universitas Muhammadiyah Surakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/iseth.5163

Abstract

The aim of this research is to investigate the dynamics of Non-Performing Financing (NPF) and Capital Adequacy Ratio (CAR) in Islamic finance from 2021 to 2023. Robust statistical methods, including Pearson and Spearman correlation tests, were used to examine the relationship between NPF and CAR. The findings indicate a significant negative correlation between NPF and CAR, with a significance value below 0.05. The strength of this inverse relationship is underscored by Pearson and Spearman correlation coefficients of -0.342 and -0.486, respectively, signifying a robust association. This negative correlation implies that as NPF increases, the CAR tends to decrease, and vice versa. The research provides valuable insights into the field of Islamic finance by highlighting the potential threat posed by declining non-performing financing (NPF) to the stability of financial institutions. Understanding these dynamics is important for stakeholders to develop strategic measures that maintain the Capital Adequacy Ratio and ensure the resilience of Islamic financial systems between 2021 and 2023.
Applied Statistical Analysis: Regression Analysis of Islamic Banking Asset Growth and Conventional Banking Growth 2021-2022 Risdayani, R; Isman, I; Hidayat, Syamsul; Nirwana, Andri
Proceeding ISETH (International Summit on Science, Technology, and Humanity) 2023: Proceeding ISETH (International Summit on Science, Technology, and Humanity)
Publisher : Universitas Muhammadiyah Surakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/iseth.5261

Abstract

This study aims to investigate and analyse the relationship between Islamic banking assets and conventional banking assets in Indonesia. The research methodology involves the use of a linear regression test to determine the dependence relationship between Islamic banking assets (dependent) and conventional banking assets (independent). The results of the analysis showed that there was a significant negative relationship between the variables and the dependent variable, with a significance value of 0.441 (> 0.05). The regression equation obtained Y=0.105-0.158X illustrates that if the independent variable (Islamic banking assets) increases, the dependent variable (conventional banking assets) will decrease, and vice versa. This research is expected to provide practical insights for practitioners to help stakeholders make more informational and informed decisions to make more informational and strategic decisions to achieve their goals.
Linear Regression Analysis: The Impact of the Total Population on Halal Certification Applicants in Indonesia (2021-2022) Risdayani, R; Hidayat, Syamsul; Widodo, Prima Ariyo
Proceeding ISETH (International Summit on Science, Technology, and Humanity) 2023: Proceeding ISETH (International Summit on Science, Technology, and Humanity)
Publisher : Universitas Muhammadiyah Surakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/iseth.5262

Abstract

This research investigates the relationship between the total population and the number of halal certification applicants in Indonesia from 2021 to 2022 by employing an applied statistical approach with a focus on the linear regression test. The objective is to discern the extent to which the total population influences the demand for halal certification. The study utilized secondary data collected from various sources and processed through statistical software. The findings reveal a statistically significant relationship between the total population and halal certification applicants, as evidenced by the low significance value (0.001). The regression equation, 49,003-0.000X, indicates a negative correlation, suggesting that as the total population increases, the number of halal certification applicants tends to decrease. The applicative contribution of this research lies in providing valuable insights for policymakers, industries, and halal certifying bodies. Understanding the dynamics of population influence on halal certification demand can guide strategic planning for meeting the growing needs of consumers. However, it is noteworthy that the regression coefficient indicates a nonsignificant contribution of the total population in explaining variations in halal certification applicants, emphasizing the need for additional factors to be considered in comprehensive analyses of halal certification.