Journal of Management and Leadership
Vol 2 No 2 (2019): Volume 2 - Nomor 2 - November 2019

THE DETERMINANT FACTORS OF PROFITABILITY ON SHARIA RURAL BANKS IN INDONESIA

Devita Rahma Aryati (Management Study Program President University)
Purwanto Purwanto (Management Study Program President University)



Article Info

Publish Date
01 Nov 2019

Abstract

This research aimed to empirically examine the determinants of profitability of Sharia rural banks in Indonesia with quarterly period of time from 2014Q1 to 2018Q3. This research uses cross-sectional data of quarterly financial report and macroeconomic variables in Indonesia. The study is processed and analyzed quantitatively by using multiple regression. This research is using 8 Sharia rural banks in Indonesia with the total of 152 data used. The research reveals that inflation and NPF have no significant influence towards profitability of Sharia rural banks in Indonesia. While, the other four variables, GDP, CAR, FDR and OER are significantly influence the profitability of Sharia rural banks in Indonesia as much as 31.6%. In terms of variables, GDP, CAR and FDR are positively significant influence the profitability, while OER has negatively significant influence the profitability of Sharia rural banks in Indonesia.

Copyrights © 2019






Journal Info

Abbrev

jml

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Management and Leadership (JML) is a scientific journal managed by a Management Study Program of TANRI ABENG UNIVERSITAS, and fully refereed journal with ISSN 2620 –9942 (Printed Version) ISSN 2621–2935(Online Version). This journal is freely distributed on the internet and mobile ...