The Effect of Capital Adequacy Rasio (CAR) and Liquidity on Profitability of Islamic Comercial Banks in Indonesia for The 2015- 2019 Period

Abstract

This study aims to determine how the Effect of Capital Adequacy Ratio (CAR) and Liquidity on Profitability of Islamic Commercial Banks in Indonesia for the 2015-2019 Period. The results of data processing using the SPSS 17 For Windows program resulted in multiple regression analysis with two independent variables and one dependent variable showing that Y = 1.108 +1.404X1 - 0.240 X2, meaning that profitability is influenced by Capital Adequacy Ratio (CAR) and Liquidity. Furthermore, the results show that the Capital Adequacy Ratio (CAR) and Liquidity variables can explain the Profitability variable 36%, the remaining 64% is explained by other variables. The results of the hypothesis test state that: Hypothesis 1 is accepted, this can be seen from the value of tcount>ttable, then the Capital Adequacy Ratio (CAR) has an effect on profitability. The second hypothesis is rejected, it can be seen from the value of tcountFtable, it is stated simultaneously that Capital Adequacy Ratio (CAR) and Liquidity have an effect on Profitability.

Authors and Affiliations

DedyDwi Arseto , Sabaruddun Chaniago , Andri Soemitra , IskandarMuda , Sugianto,

Keywords

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  • EP ID EP705407
  • DOI 10.47191/ijmra/v5-i1-04
  • Views 109
  • Downloads 0

How To Cite

DedyDwi Arseto, Sabaruddun Chaniago, Andri Soemitra, IskandarMuda, Sugianto, (2022). The Effect of Capital Adequacy Rasio (CAR) and Liquidity on Profitability of Islamic Comercial Banks in Indonesia for The 2015- 2019 Period. International Journal of Multidisciplinary Research and Analysis, 5(01), -. https://europub.co.uk/articles/-A-705407