Research Article
Determinants of Capital Structure in Islamic Banks in Indonesia
@INPROCEEDINGS{10.4108/eai.13-9-2023.2341211, author={Risma Nandani and Agus Satrya Wibowo and Muhammad Ichsan Diarsyad}, title={Determinants of Capital Structure in Islamic Banks in Indonesia}, proceedings={Proceedings of the 6th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2023, 13-14 September 2023, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICEBE}, year={2023}, month={12}, keywords={capital structure asset structure profitability financing deposit ratio}, doi={10.4108/eai.13-9-2023.2341211} }- Risma Nandani
Agus Satrya Wibowo
Muhammad Ichsan Diarsyad
Year: 2023
Determinants of Capital Structure in Islamic Banks in Indonesia
ICEBE
EAI
DOI: 10.4108/eai.13-9-2023.2341211
Abstract
The purpose of this study is to look at the factors that affect capital structure in Indonesian Shariah banks. This study analyzes variables including asset structure, profitability, and financing deposit ratio that affect capital structure. 200 observation samples from Shariah banks registered with the Financial Services Authority between 2017 and 2021 were utilized as panel data in this study. The results of the study show that profitability and asset structure have a considerable detrimental effect on capital structure. In contrast, the findings demonstrate that the financing deposit ratio significantly improves capital structure. The results of this study can significantly influence management choices and the creation of Shariah-compliant banking strategies in Indonesia, particularly when it comes to capital structure.