Jurnal Ekonika : Jurnal Ekonomi Universitas Kadiri
Vol 6, No 1 (2021): APRIL 2021

Analyzing The Effect Of Bank Characteristic On Profitability In Banking Companies Listed In Indonesia Stock Exchange

Serly Serly (Universitas Internasional Batam)



Article Info

Publish Date
30 Apr 2021

Abstract

This research is conducted to analyze the effect of bank characteristics on go public banks’ profitability in Indonesia. Return on asset, return on equity, and net interest margin are dependent variables in this research and involves five types of banking risks (credit, liquidity, security, capital, and insolvency), bank size and diversification, and cost efficiency. Research objects of this research are banking companies listed on Indonesian Stock Exchange (IDX). The research data is financial data issued by IDX from 2014 to 2018. Observation data collected in this research is processed using the regression panel method. The result from this research is that credit risk and insolvency risk has effect on return on asset and return on equity significantly. Liquidity risk, capital risk and bank size don’t have significant effect. Security risk and bank diversification effecting net interst margin significantly. Cost efficiency has effect on profitability significantly.

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Journal Info

Abbrev

ekonika

Publisher

Subject

Economics, Econometrics & Finance

Description

Ekonika : Jurnal Ekonomi Universitas Kadiri publish by Faculty of Economics, Universitas Kadiri. The Journal of Ekonika first appeared in March of 2016. The journal is published twice a year, in April and September. Ekonika is a national scientific journals are open to seeking innovation, creativity ...