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
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- EP ID EP709315
- DOI 10.47191/jefms/v5-i8-30
- Views 128
- Downloads 0
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