Determining Factors That Affecting Financial Performance of Sharia Small Business Bank by Using Ordinal Logistic Regression with Bootstrap Estimation

The aim of this study is to find out the financial performance‘s affecting factors of sharia small business bank in Indonesia. Financial performance is the response variable which grouped into three categories, they are bad, medium, and good. Predictor variables involved in this study consisted of 11 numerical data and 1 categorical data. The numerical data are financial capital, productive assets, credit, third party funds, income, capital adequacy ratio, return on assets, return on equity, financing deposit ratio, non performing financing, and operational efficiency. Whereas the categorical data is the location of sharia small business bank (1 if it is in rural areas, 2 if it is in the business center, and 3 if it is in a business and urban center). Ordinal logistic regression with a bootstrap estimation is performed to determine the predictor variable that affects the response variable. This study found that two predictor variables affected the response variable significantly, namely return on assets and return on equity with a hit ratio of 96.41%. So that it can be concluded that the model obtained has been able to determine the level of performance of sharia small business bank in Indonesia.