ANALYSIS OF EFFECT OF CAR, ROA, LDR, COMPANY SIZE, NPL, AND GCG TO BANK PROFITABILITY (CASE STUDY ON BANKING COMPANIES LISTED IN BEI PERIOD 2010-2013)
Abstract
Bank profitability ratio analysis is a tool to analyze or measure the level of business efficiency and profitability achieved by the bank concerned. Profitability is the ability of the company, in this case the banking company, to generate profit.
Profitability can be affected by credit risk, liquidity risk, good corporate governance, earnings, Capital, as well as the size of the company. The purpose of this study was to analyze the effect of CAR, ROA, LDR, company size, NPL, and GCG on the profitability of banks listed on the Stock Exchange in 2010-2013.
This study uses the CAR, ROA, LDR, company size, NPL, and GCG as independent variables and the profitability of the bank as the dependent variable. The sampling technique is purposive sampling. The sample used was a conventional commercial bank listed on the Stock Exchange which publishes an annual report during the observation period (2010-2013). The analysis is a method of quantitative analysis, including descriptive statistic analysis, regression test, and analysis models goodness.
Based on the results of testing capital adequacy ratio (CAR) and the size of the company's positive effect on return on assets (ROA), operating income and operating costs negatively affect the return on assets (ROA). While the loans to deposits ratio, non-performing loans and good corporate governance (GCG) has no effect on return on assets (ROA). Based on the test results showed that showed that the regression model can be used to predict the return on assets (ROA). While the variable CAR, LDR, ROA, company size, NPL, and GCG able to explain ROA of 46.7%.
Keywords: CAR, BOPO, LDR, firm size, NPL, GCG, ROA.
Profitability can be affected by credit risk, liquidity risk, good corporate governance, earnings, Capital, as well as the size of the company. The purpose of this study was to analyze the effect of CAR, ROA, LDR, company size, NPL, and GCG on the profitability of banks listed on the Stock Exchange in 2010-2013.
This study uses the CAR, ROA, LDR, company size, NPL, and GCG as independent variables and the profitability of the bank as the dependent variable. The sampling technique is purposive sampling. The sample used was a conventional commercial bank listed on the Stock Exchange which publishes an annual report during the observation period (2010-2013). The analysis is a method of quantitative analysis, including descriptive statistic analysis, regression test, and analysis models goodness.
Based on the results of testing capital adequacy ratio (CAR) and the size of the company's positive effect on return on assets (ROA), operating income and operating costs negatively affect the return on assets (ROA). While the loans to deposits ratio, non-performing loans and good corporate governance (GCG) has no effect on return on assets (ROA). Based on the test results showed that showed that the regression model can be used to predict the return on assets (ROA). While the variable CAR, LDR, ROA, company size, NPL, and GCG able to explain ROA of 46.7%.
Keywords: CAR, BOPO, LDR, firm size, NPL, GCG, ROA.
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