Sabiantoro, Mastuti
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Analysis of the Influence of Liquidity, Solvency, and Interest Rates on Company’s Return on Assets Sabiantoro, Mastuti; Sibarani, Mentiana
Dinasti International Journal of Education Management And Social Science Vol. 6 No. 5 (2025): Dinasti International Journal of Education Management and Social Science (June
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijemss.v6i5.4647

Abstract

This study aims to analyze the influence of liquidity, solvency, and interest rates on Return on Assets (ROA) in conventional banks listed in the Infobank15 index during the period 2019–2023. In the context of economic dynamics caused by the COVID-19 pandemic and changes in monetary policy, this research adopts a quantitative approach using panel data regression and the Seemingly Unrelated Regression (SUR) estimation method. The results show that, partially, the Capital Adequacy Ratio (CAR) and interest rates have a positive and significant effect on ROA, while the Current Ratio (CR) has no significant effect. Simultaneously, the three independent variables are proven to significantly influence ROA. These findings provide important implications for bank management, regulators, and investors in formulating strategies to enhance profitability and stability in Indonesia's banking sector.