Title:
INFLUENCE OF CAPITAL ADEQUACY, THIRD PARTY FUND, AND NON-PERFORMING FINANCING TO PROFITABILITY THROUGH FINANCING (STUDY ON SHARIA COMMERCIAL BANK LISTED IN BANK INDONESIA)

Authors:
Mulia Saputra, Emilda Priyatni, Muslim A. Djalil, Ade Irma Suryani

Volume - 2 Issue - 9, Pages - 4591-4604

Abstract:
This study aims to examine the influence of capital adequacy, third party funds, non-performing financing on profitability through financing either simultaneously or partially. The influence on one endogen variable that is profitability will be tested by fourth exogenous variables. This study is a census study, which includes all existing Sharia Banks in Indonesia into observational data. Observation period of research data from 2009-2015 amounted to 71 observations. The method of analysis used is path regression. The results of this study found that the adequacy of capital, third party funds, and non-performing financing simultaneously and partially influence the financing at Sharia Commercial Bank in Indonesia. The fluctuation in both the increase and decrease in financing of Sharia Commercial Banks in Indonesia is influenced by the three independent variables. Capital adequacy, third party fund, non-performing financing and financing itself also simultaneously and partially influence the profitability of Sharia Commercial Banks in Indonesia. The increase or decrease in profitability is determined by the four exogenous variables. Financing can then mediate the influence of capital adequacy, third party funds and non-performing financing on the profitability of sharia banks in Indonesia partially.

Cite this Article:

[Saputra, Mulia, et al. "INFLUENCE OF CAPITAL ADEQUACY, THIRD PARTY FUND, AND NON-PERFORMING FINANCING TO PROFITABILITY THROUGH FINANCING (STUDY ON SHARIA COMMERCIAL BANK LISTED IN BANK INDONESIA)." International Journal of Social Science and Economic Research, vol. 2, no. 9, 2017, pp. 4591-4604. September. ]