IS THERE A TRADE-OFF BETWEEN CAPITAL ADEQUACY AND PROFITABILITY?

Etty Indriani, Etty and P. Haryoso, Haryoso and Bambang Kusdiasmo, Bambang and Linda Nur Susila, Linda and Achmad Choerudin, Choerudin (2020) IS THERE A TRADE-OFF BETWEEN CAPITAL ADEQUACY AND PROFITABILITY? Talent Development & Excellence, 12 (1). pp. 4580-4588. ISSN 1869-0459 (print) / 1869-2885(online)

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Abstract

This study aims to find out the impact of Capital Adequacy Ratio(CAR) and Third Parties Fund towards Lending and Return on Asset (ROA). The population in this study are all of Public Banks in Indonesia registered in Indonesia Stock Exchange in the period of 2012-2015. The Sample taken by purposive sampling of 15 Public Banks in Indonesia. This study uses data panel in the form of Public Banks financial report registered in Indonesia Stock Exchange. The used analytical method of this study is path regression analysis. The result of this study shows that Capital Adequacy Ratio (CAR) gives negative impact and significant towards Return on Asset.The finding oh this research is lending becomes mediator between third parties fund (funding) and Return on Asset. Third Parties Fund has high contribution in increasing profitability through Lending.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Etty Indriani
Date Deposited: 20 Jun 2020 05:48
Last Modified: 20 Jun 2020 05:53
URI: http://repository.undha.ac.id/id/eprint/851

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