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Analysis of Return on Asset for BUKU IV: Jakarta Interbank Spot Dollar Rate, Capital Adequacy Ratio and Loan To Deposit Ratio

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  • Lis Sintha Oppusunggu
  • Ika Pratiwi Simbolon

Abstract

The research aim is to study factors that can affect the Return on Assets for BUKU IV Banks in Indonesia. The paper uses monthly data from annual reports. The independent variables are Jakarta Interbank Spot Dollar Rate, Capital Adequacy Ratio, and Loan to Deposit Ratio. Data analysis is done by using multiple linear regression. There is partial effect between the Capital Adequacy Ratio towards Return on Asset, significantly. Furthermore, all of the independent variables have a simultaneous effect on the Return on Asset, significantly. Regarding the research limitations, future research can use the research object not limited to banking companies in order to generate a better research model. Future research may use longer periods for better prediction ability.

Suggested Citation

  • Lis Sintha Oppusunggu & Ika Pratiwi Simbolon, 2024. "Analysis of Return on Asset for BUKU IV: Jakarta Interbank Spot Dollar Rate, Capital Adequacy Ratio and Loan To Deposit Ratio," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 166-182.
    • Handle: RePEc:bas:econst:y:2024:i:1:p:166-182
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    More about this item

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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