Journal of Multidisciplinary Academic
Vol 5, No 3 (2021): Science, Engineering and Social Science Series (New Update: With DOI index)

The Effect of Capital Adequacy, Credit Risk, and Liquidity on Commercial Banks Profitability in Indonesia Stock Exchange

Anastasia Anggraini (Udayana University (UNUD), Bali, Indonesia)
Dewa Gede Dharma Suputra (Udayana University (UNUD), Bali, Indonesia)



Article Info

Publish Date
20 May 2021

Abstract

The purpose of this study was to analyse the effect of capital adequacy, credit risk, and liquidity on company profitability. The research population is all banking companies listed on the Indonesia Stock Exchange (BEI). The sampling technique used purposive sampling method, namely the method of determining the sample with certain considerations. The sample criteria are the banking sector that is listed continuously on the Indonesian Stock Exchange as many as 38 banking companies listed on the IDX continuously during the 2015 - 2019 period. The results show that capital adequacy and liquidity have a positive effect on profitability and credit risk have a negative effect on profitability. This study illustrates that capital adequacy, liquidity, and credit risks can predict the level of profitability that can be used by investors and stakeholders in taking decisions.

Copyrights © 2021






Journal Info

Abbrev

JoMA

Publisher

Subject

Education Engineering Social Sciences

Description

Journal of Multidisciplinary Academic is published bimonthly by the Kemala Publisher, Indonesia. Journal of Multidisciplinary Academic publishes original work of importance in any field which will interest readers from more than one discipline. Authors are requested to write their papers and reports ...