Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)

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The Influence of Capital Adequacy, Credit Risk, Liquidity, Operational Cost, Income Diversification, Firm Size and Ownership Structure on the Profitability of Bank

Authors
Muchamad Imam Bintoro, Ferry Rahmadhani
Corresponding Author
Muchamad Imam Bintoro
Available Online 21 January 2021.
DOI
10.2991/aer.k.210121.018How to use a DOI?
Keywords
Profitability, Capital Adequacy, Credit Risk, Liquidity, Operational Cost, Income Diversification, Firm Size, Ownership Structure
Abstract

This research aimed to analyze the effect of capital adequacy, credit risk, liquidity, operational cost, income diversification, firm size and ownership structure on the bank’s profitability. The object of this research is the conventional commercial bank listed at the Indonesia Stock Exchange (Bursa Efek Indonesia/BEI) from 2011 to 2015. This research used a purposive sampling method, which resulting in 16 conventional commercial banks as the sample. The data used were secondary data using a documentary method obtained from BEI’s website and the Financial Services Authority (Otoritas Jasa Keuangan/OJK’s) website. This research used multiple linear regression models and IBM statistic SPSS 21.0 software for analyzing the data. The result showed that capital adequacy, credit risk, and liquidity have no significant effect on profitability. In contrast, income diversification and ownership structure bring significant positive effects on profitability. As opposed to previous items, the operational cost and firm size cause significant adverse effects on profitability.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
21 January 2021
ISBN
10.2991/aer.k.210121.018
ISSN
2352-5428
DOI
10.2991/aer.k.210121.018How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Muchamad Imam Bintoro
AU  - Ferry Rahmadhani
PY  - 2021
DA  - 2021/01/21
TI  - The Influence of Capital Adequacy, Credit Risk, Liquidity, Operational Cost, Income Diversification, Firm Size and Ownership Structure on the Profitability of Bank
BT  - Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)
PB  - Atlantis Press
SP  - 128
EP  - 132
SN  - 2352-5428
UR  - https://doi.org/10.2991/aer.k.210121.018
DO  - 10.2991/aer.k.210121.018
ID  - Bintoro2021
ER  -