Indonesian Public Bank Profitability: Risk Based Rating Approach
Jurnal Riset Akuntansi & Keuangan, Vol. 11, No. 1, Feb 2015, ISSN: 0216-5082
Posted: 27 Nov 2017
Date Written: Februari 8, 2015
Abstract
This research aims to analyze the influence of Risk Based Bank Rating to the Profitability of general bank go public listed in the Indonesia Stock Exchange. Factor tasted are Non Performing Loan, Liquidity to Deposit Ratio, Proportion of the Independent Board of Commissioners, Audit Committee, Institutional Ownership, Operating Expense and Operating Income and Capital Adequacy Ratio towards Return On Assets (ROA). The sample of this study using purposive sampling method, with the number of sample used were 20 general banks go public listed in the Indonesia Stock Exchange (IDX) in the period 2008 - 2014. Result of this study indicate that NPL, Audit Committee, and BOPO has significant effect on ROA, while the LDR, proportion of independent board, institutional ownership, and CAR has no significant effect on ROA. The result of this analysis showed about 60.3% from the adjusted R2 that ROA can be explained by NPL, LDR, GCG, BOPO, and CAR. The rest 49.7% influenced by other variables outside the model.
Keywords: Emerging Market, Bank Performance
JEL Classification: G20, G21, G32
Suggested Citation: Suggested Citation