Analisys on the Effectsof CAR and NPL on Profitability with LDR as an Intervening Variable; a case study on Commercial Banks Listed on the Indonesia stock Exchange for the 2018-2020 period

Case Study on Comersial banks listed on the Indonesia Stock exchange for the 2018-2020

Abstract

Analisys on the Effectsof CAR and NPL on Profitability with LDR as an Intervening Variable; a case study on Commercial Banks Listed on the Indonesia stock Exchange for the 2018-2020 period ( Supervised by Erlinna Pakki and Andi Aswan) 

Profitability or the ability to earn a profit is a measure in proportion used to assess to what extent the company is able to generate profits at an acceptable level. Profitability fiqures Include profit figures before or after tax, investment return, earnings per share, and profit on sales. the factors affecting profitability in this study are CAR, NPL, and LDR as the Intervening variables. the data used are secondary data with time series as data collection method. the data used in the annual financial statements of general bangking companies listed on the Indonesia Stock Exchange for the 2018-2020 period consist of 50 samples. the results of the secondary data collected through financial statements have been tested by hypothesis testing. the data were analyzed using descriptive statistical analysis technique, measuring model test or outer model, and structural model test or inner model. the results show that CAR has a positive and insignificant effect on LDR; CAR has a positive and significant effect on ROA;  LDR has a positive and insignificant effect on ROA; NPL has a negative and insignificant effect on LDR; NPL has a negative and significant effect on ROA; CAR through LDR has a positive and insignificant effect on ROA, and NPL through LDR has a positive and not significant effect on ROA.