Financing Mediation on the Effect of Firm Size and Capital Adequatiacy on the Profitability

This research aims to find out how financing mediates the effects of firm size and capital adequacy on profitability in Sharia Commercial Banks for the 2016-2020 period. The data used is annual data obtained from published Financial Report data for each Sharia Commercial Bank. The population used in this research were all Sharia Commercial Banks, totaling 14 Sharia Commercial Banks with a sample selected using the purposive sampling method, namely 7 Sharia Commercial Banks. The data analysis technique used in this research is path analysis using IBM SPSS. The results of this research indicate that firm size has a negative and significant effect on financing. Meanwhile, Capital Adequacy does not affect Financing. Then firm size does not affect profitability. And Capital Adequacy has a positive and significant effect on Profitability. Financing has a positive and significant effect on profitability. Apart from that, Financing can mediate the effect of firm Size on Profitability, and Financing can mediate the effect of Capital Adequacy on Profitability.