The Effect of Financial Risk, Capital Structure, Banking Liquidity on Profitability: Operational Efficiency as Intervening Variables in Persero Bank and Private Commercial Banks
Authors/Creators
- 1. Student of Masters Program in Financial Management at the Open University, Indonesia
- 2. Faculty of Economics, Economics and Business, Hasanuddin University, Indonesia
- 3. Faculty of Economics, Open University, Indonesia
Description
This study aims to (1) to partially analyze the effect of financial risk, capital structure, and liquidity on operational efficiency (2) to partially analyze the effect of financial risk, capital structure, liquidity, and operational efficiency on (3) to analyze partially the effect of financial risk, capital structure, and liquidity on profitability through operational efficiency at State-Owned Banks and Private Commercial Banks. The data collection technique used purposive sampling. The type of data used is quantitative data and secondary data sources which are downloaded through the website https://www.idx.co.id/. The results showed (1) financial risk, capital structure, and liquidity partially had a significant effect on operational efficiency (2) financial risk, capital structure, liquidity, and operational efficiency partially had a significant effect on profitability. (3) Financial risk, capital structure and liquidity partially have no significant effect on profitability through operational efficiency.
Files
414659911.pdf
Additional details
References
- The results of the analysis carried out can be concluded that credit risk has a positive and significant effect on operational cost efficiency at state-owned banks and private banks.
- The effect of capital structure (CAR) on operational cost efficiency, it can be concluded that capital structure (CAR) is negative and significant on operational cost efficiency
- The effect of operational efficiency (BOPO) on profitability, where from the results of the analysis it can be concluded that operational cost efficiency has a negative and significant effect on return on assets (ROA)
- The effect of financial risk (NPL) on profitability (ROA) it can be concluded that NPL has a negative and significant effect on return on assets (ROA)
- Based on the results of the path test, it shows that operational cost efficiency (BOPO) cannot mediate the effect of financial risk (NPL) on profitability (ROA).
- Based on the path test results, it can be concluded that operational cost efficiency cannot mediate the effect of capital structure (CAR) on profitability (ROA)
- From the path test results, it can be concluded that operational cost efficiency can mediate the effect of liquidity (LDR) on profitability (ROA)