The Effect of Bank-Specific Factors on Profitability of Commercial Banks Listed on the Indonesia Stock Exchange

Henny Setyo Lestari (), Bahtiar Usman, Syofriza Syofyan, Lavlimatria Esya, Hartini Hartini and Oknovia Susanti
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Henny Setyo Lestari: Universitas Trisakti, Management Study Program, Faculty of Economic and Business
Bahtiar Usman: Universitas Trisakti, Management Study Program, Faculty of Economic and Business
Syofriza Syofyan: Universitas Trisakti, Management Study Program, Faculty of Economic and Business
Lavlimatria Esya: Universitas Trisakti, Management Study Program, Faculty of Economic and Business
Hartini Hartini: Universitas Trisakti, Management Study Program, Faculty of Economic and Business
Oknovia Susanti: Universitas Andalas, Department of Mechanical Engineering, Faculty of Engineering

A chapter in Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022), 2023, pp 300-306 from Springer

Abstract: Abstract This study examines the influence of specific factors on the profitability of conventional commercial banks listed on the Indonesia Stock Exchange for the 2016–2020 period. This study uses purposive sampling with a sample of 41 conventional commercial banks. The results show that bank size does not affect profitability. The capital, deposit, and liquidity ratio variables have a significant negative effect on profitability. Meanwhile, the variables of management efficiency and asset quality have a significant positive effect on profitability. This research is important so that banks can determine from the start what factors can affect their profitability, with banks having to maintain a level of capital according to Bank Indonesia standards, effectively monitoring bank operations, and selective supervision in lending to increase profitability.

Keywords: Deposit; Management Efficiency; Asset Quality; Liquidity; Profitability; Capital Ratio; Bank Size (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-350-4_28

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DOI: 10.2991/978-94-6463-350-4_28

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