The Effect of Inflation, Interest Rate, Gross Domestic Product, Operational Efficiency Ratio, Loan to Deposits Ratio in Private Bank Return on Asset in IDX
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 08
Abstract
Private Bank activities can’t be separated from the company’s profit known as Return On Assets. Bank management needs to maintain the amount of Return On Assets. The goal of this study is to examines the effect of inflation, interest rate, gross domestic product, operational efficiency ratio and loan to deposits ratio regarding on Return on Assets at private bank listed on Indonesia Stock Exchange period 2016-2020. Quantitative data is used in this type of the research is regression analysis multiple linear. The population in this study were 34 private banks listed in Indonesia Stock Exchange period 2016-2020. Samples taken as much as 18 company. From this analysis, the regression analysis of Return On Assets = 3.754 + 0.067 Inflation + 0.090 Interest Rate – 5.500 Gross Domestic Product – 0.042 Operational Efficiency Ratio + 0.000 Loan to Deposits Ratio + e. The result of this research is that inflation has no effect on ROA in private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Interest rate has no effect on ROA on private banks which are listed on the Indonesia Stock Exchange period 2016- 2020. Gross Domestic Product has no effect on ROA in private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Operational Efficiency Ratio has an effect on ROA in private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Loan to Deposit Ratio has no effect on ROA of private banks which are listed on the Indonesia Stock Exchange period 2016-2020. Inflation, Interest Rates, Gross Domestic Product, Operational Efficiency Ratio, and Loan to Deposit Ratio affect the ROA of private bank which are listed on the Indonesia Stock Exchange period 2016-2020.
Authors and Affiliations
Cornellya, Josephine, Shania Surianto, Tetty Tiurma Uli Sipahutar, Vetris Kangdra
Keywords
Related Articles
- EP ID EP709315
- DOI 10.47191/jefms/v5-i8-30
- Views 119
- Downloads 0
The Meaning of Accounting for Gen Y and Gen Z: Behind the Declining Interest in Accounting Courses
The declining interest in studying accounting programmes has become an increasingly serious challenge in the context of higher education and the accounting world. In this context, the research will utilise Paul Ricoeur's...
First “3 Second” Impression of Tiktok Marketing Strategy
The use of TIK TOK as promotional media is a form of marketing activity that can quickly spread information about a product and brand recognition of a product and the aim of this research is to find out the strategy for...
Importance of Economic Corridors as Driver of Regional Integration: South Caucasus and Central Asian Context
Developing and integrating regions is facilitated by economic corridors, which are strategically arranged infrastructure systems that include roads, railroads, ports, and pipelines. The importance of economic corridors i...
Your Business Network Depends on Your Business Analysis Ability
Indonesia is an agricultural country. The Central Bureau of Statistics recorded that the farming profession reached 9,749,093 people. Particularly in Tuban district, East Java, dominated by rice commodity farmers with a...
Decision to Adopt Islamic Banking: Examining the Effects of Disposable Income and Islamic Financial Literacy
The issue of consumer behavior in deciding to adopt Islamic banking is always developing in various cases and time periods, because this phenomenon is growing rapidly along with the accelerated development of Islamic ban...