Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia

Research Article

The Effect Of CAR, NPL And BOPO On ROA With LDR As Intervening Variable

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  • @INPROCEEDINGS{10.4108/eai.2-8-2023.2340790,
        author={Heni  Hernawati and Dedi  Hariyanto and Heni  Safitri},
        title={The Effect Of CAR, NPL And BOPO On ROA With LDR As Intervening Variable},
        proceedings={Proceedings of the 1st International Conference on Economics and Business, ICEB 2023, 2-3 August 2023, Padang, Sumatera Barat, Indonesia},
        publisher={EAI},
        proceedings_a={ICEB},
        year={2024},
        month={6},
        keywords={capital adequacy ratio non performing loan operational costs of operational revenue return on assets and loan to deposit ratio},
        doi={10.4108/eai.2-8-2023.2340790}
    }
    
  • Heni Hernawati
    Dedi Hariyanto
    Heni Safitri
    Year: 2024
    The Effect Of CAR, NPL And BOPO On ROA With LDR As Intervening Variable
    ICEB
    EAI
    DOI: 10.4108/eai.2-8-2023.2340790
Heni Hernawati1, Dedi Hariyanto1,*, Heni Safitri1
  • 1: University Muhammadiyah of Pontianak, Indonesia
*Contact email: dedi.hariyanto@unmuhpnk.ac.id

Abstract

Banks are financial institutions that aim to get profit. When a bank's Return On Asset (ROA) is higher, the greater the bank's ability to generate profits. This study aims to analyze the effect of CAR, NPL, and BOPO on ROA with LDR as an intervening variable. This method uses associative research. The sample was 40 banking companies for the 2019-2021 period through purposive sampling. The analysis techniques used in this research are classical assumption test, path analysis, coefficient of determination analysis, and partial test (t test). The results of this study indicate that CAR, NPL and BOPO have no significant effect on LDR. LDR has no significant effect on ROA. CAR has no effect on ROA through LDR. NPL and BOPO have a significant influence on ROA through LDR. Thus, the LDR variable cannot be used as an intervening variable for the influence of CAR, NPL and BOPO on ROA.