The Effect of Capital Adequacy, Asset Quality, and Liquidity on the Financial Performance of Shariah Rural Bank in East Java

Moch. Shultoni1

1

Publication Date: 2020/09/22

Abstract: This study aims to analyze the effect of capital adequacy, quality of productive assets, and liquidity on financial performance. Financial performance is proxied by using Return On Assets (ROA). The population in this study is the Islamic Rural Bank (IRB) registered at Financial Services Authority. Sampling was conducted using purposive sampling method and total sample there are 100 samples. This research uses secondary time series data was published at official website www.ojk.go.id . The analytical method used is multiple linear regression by using SPSS 22 as tool to process the data and test the hypotheses. The result of this research indicate that capital adequacy has no significant effect on financial performance, while the quality of productive assets and liquidity has a significant effect on financial performance.

Keywords: Financial Performance, Islamic Rural Bank, Multiple Linear Regression.

DOI: 10.38124/IJISRT20SEP290

PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT20SEP290.pdf

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