Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 November 2018, Lhokseumawe, Aceh, Indonesia

Research Article

The Effect of Capital Adequacy Ratio, Financing to Deposit Ratio, Non Performing Financing, Operating Expenses, Operating Income and Good Corporate Governance towards the Profitability of Islamic Banking Listed in Bank of Indonesia

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  • @INPROCEEDINGS{10.4108/eai.12-11-2018.2288834,
        author={Arfan  Ikhsan and Muamar  Khadafi and Muhammad Yamin Noch and Aristia  Paramitha and Wahyudin  Albra},
        title={The Effect of Capital Adequacy Ratio, Financing to Deposit Ratio, Non Performing Financing, Operating Expenses, Operating Income and Good Corporate Governance towards the Profitability of Islamic Banking Listed in Bank of Indonesia},
        proceedings={Proceedings of the 1st International Conference on Finance Economics and Business, ICOFEB 2018, 12-13 November 2018, Lhokseumawe, Aceh, Indonesia},
        publisher={EAI},
        proceedings_a={ICOFEB},
        year={2019},
        month={10},
        keywords={capital adequacy ratio financing to deposit ratio non performing financing operating expenses operating income good corporate governance profitability},
        doi={10.4108/eai.12-11-2018.2288834}
    }
    
  • Arfan Ikhsan
    Muamar Khadafi
    Muhammad Yamin Noch
    Aristia Paramitha
    Wahyudin Albra
    Year: 2019
    The Effect of Capital Adequacy Ratio, Financing to Deposit Ratio, Non Performing Financing, Operating Expenses, Operating Income and Good Corporate Governance towards the Profitability of Islamic Banking Listed in Bank of Indonesia
    ICOFEB
    EAI
    DOI: 10.4108/eai.12-11-2018.2288834
Arfan Ikhsan1,*, Muamar Khadafi2, Muhammad Yamin Noch3, Aristia Paramitha1, Wahyudin Albra2
  • 1: State University of Medan, Indonesia
  • 2: University of Malikusaleh, Indonesia
  • 3: University of Yapis Papua, Indonesia
*Contact email: arf_79lbs@yahoo.com

Abstract

This study aims to examine the effect of Capital Adequacy Ratio (CAR), Financing to Deposite Ratio (FDR), Non Performing Ratio (NPF), Operating Expenses and Operating Income (BOPO), and Good Corporate Governance (GCG) towards the profitability of Islamic Banking listed in Bank of Indonesia for the period 2011-2015. The population of this study is all listed Islamic Bankings in Bank of Indonesia. The samples are the Islamic Banks that have been established for 5 years and have published audited financial statements and have implemented good corporate governance system during the study period. The data analysis in this research used quantitative approach with classical assumption test, multiple regression analysis and hypothesis test assisted by SPSS 20. The results shows that the regression model is independent of multicolinearity, heteroscedasticity, autocorrelation symptoms, and the data results are normally distributed. Multiple regression analysis shows that Capital Adequacy Ratio (CAR) has positive and significant effect on profitability, Financing to Deposite Ratio (FDR) and Non Performing Adequacy Ratio (NPF) have significant and negative effect on profitability, Operating Expenses and Operating Income (BOPO) and Good Corporate Governance (GCG) has no effect on profitabiity.