The Influence of Capital Adquacy Ratio and Non Performing Loan on Return On Asset

  • Elsa Thyovani Universitas Singaperbangsa Karawang
  • Gusganda Suria Manda Universitas Singaperbangsa Karawang

Abstract

Bank performance can be measured using Return On Assets as a measuring tool for a company in achieving profitability in the form of assets owned by the company. This study aims to determine the effect of the ratio of capital adequacy and non-performing loans on return on assets. The population of this study are several banking companies listed on the IDX in the 3 year observation period (2017-2019). This study took samples taken using purposive sampling method. Based on the results of multiple linear regression analysis which shows that the capital adequacy ratio has a positive and significant effect on asset returns, meanwhile non-performing loans have a negative and insignificant effect on asset returns.

Published
2022-05-09
How to Cite
THYOVANI, Elsa; MANDA, Gusganda Suria. The Influence of Capital Adquacy Ratio and Non Performing Loan on Return On Asset. Primanomics : Jurnal Ekonomi & Bisnis, [S.l.], v. 20, n. 2, p. 101-112, may 2022. ISSN 2614-6789. Available at: <https://jurnal.ubd.ac.id/index.php/PE/article/view/1177>. Date accessed: 06 july 2022. doi: https://doi.org/10.31253/pe.v20i2.1177.

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