ANALYSIS OF MACROECONOMIC EFFECT AND DEBT POLICY ON MARKETS OF SHARIA BANKS WITH PROFITABILITY AS INTERVENING VARIABLES

Abstract

This study was conducted to examine the effect of macroeconomic factors as measured by the growth of inflation and GDP, and debt policy as measured by the Long Term Debt Asset Ratio (LDAR) to the market share of Islamic banks with profitability measured by Return on Assets (ROA) as mediation This study uses a mix method that combines secondary data processing and interviews. The data analysis technique used in this study is path analysis where previously the data has been tested by testing classical assumptions
During the observation period showed that the research data with normal distribution did not find variables that deviated from classical assumptions. This shows that the available data has met the requirements using the path analysis equation model. The results of this study indicate that the inflation and LDAR variables have a negative effect on ROA and GDP growth has a positive effect on ROA. In the test with path analysis shows that ROA is able to mediate the influence of GDP on market share, while the influence of Inflation and LDAR on market share, ROA as an intervening variable is not able to mediate. The predictive ability of these four variables to market share in this study was 89.8%, while the rest was influenced by other factors not included in the research model. Keywords: Macroeconomics, Debt Policy, Profitability, Market share