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http://dx.doi.org/10.13106/jafeb.2021.vol8.no5.0109

Costs and Operational Revenue, Loan to Deposit Ratio Against Return on Assets: A Case Study in Indonesia  

RAJINDRA, Rajindra (Department of Management, Faculty of Economics, Universitas Muhamammdiyah Palu)
GUASMIN, Guasmin (Department of Management, Faculty of Economics, Universitas Muhamammdiyah Palu)
BURHANUDDIN, Burhanuddin (Department of Management, Faculty of Economics, Universitas Muhamammdiyah Palu)
ANGGRAENI, Rasmi Nur (Department of Management, Faculty of Economics, Universitas Muhamammdiyah Palu)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.5, 2021 , pp. 109-115 More about this Journal
Abstract
This study aims to examine the effect of Operating Costs and Income, Loan to Deposit Ratio on the Return on Asset (ROA) of Public-Private Foreign Exchange Banks listed on the Indonesia Stock Exchange (IDX) during the 2015-2018 period. This study is a quantitative study using financial reports of Public-Private Foreign Exchange Banks listed on the IDX as a data source. This study's population is 25 Public-Private Foreign Exchange Banks listed on the IDX. This study uses purposive sampling to determine the sample to produce 21 banking companies. Data was analyzed using multiple linear regression methods and descriptive statistics. The F Test calculation results state that all the variables of free operating expenses, operating income, and the loan to deposit ratio simultaneously and significantly affect the return on assets (ROA) variable in Public-Private Foreign Exchange Banks listed on the IDX. This study's results indicate that simultaneously Operational Costs, Operational Income, and Loan to Deposit Ratio have a significant effect on ROA. Operational Costs and Operational Income have a significant negative impact on Return on Assets. The third hypothesis shows that the Loan to Deposit Ratio has a positive and insignificant effect on Return on Assets.
Keywords
Operating Costs; Income; Loan to Deposit Ratio; Return on Asset;
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