The Determinant Factors of Operational Performance in Indonesian Banking Companies

1Erly Sherlita , Evi Octavia, R. Wedi Rusmawan Kusumah, Fitri Sukmawati, Eddy Winarso

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Abstract:

This study aims to examine the determinant factors of operational performance in the Indonesia banking companies. The factors are tested include public funds, growth of earning assets, credit risks, liquidity risks and capital adequcy on operational performance. The data use a new unbalanced data panel from 203 financial reports of 44 banking companies that listed in the Indonesia Stock Exchange for the period 2013-2017. The results showed that public funds and the growth of earning assets have a significant negative effect on operational performance. Meanwhile, credit risk as measured by a non-performing loan has a significant positive effect on operational performance. However, this study found liquidity risk and leverage risk have no effect on operational performance.

Keywords:

public funds, growth of earning assets, credit risks, leverage risks and capital adequacy, operational performance.

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages7966-7975