The Effect of Credit Risk and Board Diversity on the Performance of Banks Listed on the Indonesian Stock Exchange

Authors

  • Adhyatma Ndaru Suhardono Universitas Trisakti image/svg+xml
  • Asnita Simamora Universitas Trisakti image/svg+xml
  • JR. Dwi Mas Sukma Agung Universitas Sains Al-Qur'an Jawa Tengah di Wonosobo
  • Henny Setyo Lestari Universitas Trisakti image/svg+xml
  • Farah Margaretha Leon Universitas Trisakti image/svg+xml

DOI:

https://doi.org/10.30659/ijibe.8.2.144-158

Keywords:

Banking Performance, Return on Assets, Capital Adequacy Ratio, Non-Performing Loans, Earning Ability, Loan to Deposit Ratio

Abstract

This research aims to analyze the influence of several factors on banking performance in Indonesia, with a focus on Return on Assets (ROA). The factors studied include the Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL) ratio, Expected Credit Loss Provision (CKPN) ratio, Earning Ability (BOPO), Loan to Deposit Ratio (LDR), and Board Diversity (BD). Data was taken from banking companies listed on the Indonesia Stock Exchange in the period 2018 to 2022. The analysis method uses a linear regression test with a Fixed Effect Model. The research results show that the NPL ratio, CKPN ratio, BOPO, LDR, and BD have a significant influence on banking performance, while CAR does not have a significant influence. These results provide important information for investors and managers in managing banks, as well as being the basis for further research in identifying other factors that influence banking performance in Indonesia.

 

Author Biographies

  • Adhyatma Ndaru Suhardono, Universitas Trisakti
    Dept. Of Management
  • Asnita Simamora, Universitas Trisakti
    Dept. of Management
  • JR. Dwi Mas Sukma Agung, Universitas Sains Al-Qur'an Jawa Tengah di Wonosobo
    Dept. of Management

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Published

2023-12-10

Issue

Vol. 8 No. 2 (2023): September 2023

Section

Articles

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