The effect of risk management on financial performance with good corporate governance as a moderation variable

Mardiana Mardiana, Puji Endah P, Ayyu Wafiqotun Mirza Dianata

Abstract


This study aims to examine the effect of risk management proxied by the Capital Adequacy Ratio (CAR), Operating Efficiency (BOPO), and Non Performing Loan (NPL), to the financial performance projected with Return on Assets (ROA) in Islamic Banking Companies listed on the Indonesia Stock Exchange (BEI) in the period 2011 to 2016. The data used is obtained from the Financial Statements of Sharia Banking Companies Listed on Indonesia Stock Exchange in the period 2011 to 2016. After passing through the stage of purposive sampling, the worthy of used sample is 5 Companies. The results showed that the variable of Capital Adequacy Ratio (CAR), and Non Performing Loan (NPL) had negative and insignificant effect on Return on Asset (ROA), and Operating Efficiency (BOPO) had negative and significant effect on Return on Assets (ROA). Thus, the bank (issuer) is expected to pay more attention to the level of operating efficiency to improve the profitability of the company's financial performance. Meanwhile, the variable Capital Adequacy Ratio (CAR) and Non Performing Loan (NPL) did not significantly affect the Return on Asset (ROA) of the company because during the study period, the bank intermediation function was not as expected.


Keywords


Operation Efficiency, Credit Risk, Liquidity, Financial Performance.

Full Text:

PDF

References


Al-Qur’an add-Ins

Aebi,V., Sabato, G., & Schmid, M. 2011. Risk Management, Corporate Governance, and Bank Performance in the Financial Crisis. Swiss Institute of Banking and Finance, University of St. Gallen, CH-9000 St. Gallen, Switzerland.

Alkhatib, A., & Harsheh, M. 2012. Financial performance of Palestinian Commercial Banks. International Journal of Business and Social Science, 3(3), 175-184.

Al-Shubiri, Faris Nasifet al. 2012. Financial and Non Financila Determinants of Corporate Social Responsibility. Asian Economic and Financial Review. Vol. 2(8): 1003.

Arifin. 2005. Peran Akuntan dalam Menegakkan Prinsip Good Corporate Gonvernance pada Perusahaan di Indonesia (Tinjauan Perspektif Teori Keagenan). Pidato sidang senat guru besar Universitas Diponegoro.

Ariyani, D. 2010. Analisis pengaruh CAR, NPL, BOPO dan LDR terhadap ROA pada Bank Devisa di Indonesia Tahun 2003–2006. Skripsi, Universitas Diponegoro Semarang.

Funso, K T., Kolade, A R., & Ojo, O M. 2012. Credit Risk and Commercial Banks’ Performance in Nigeria: A Panel Model Approach. Australian Journal of Business and Management Research, 2(2), 31-38.

Gieseche, K. 2004. Credit risk modelling and valuation: An introduction, Credit Risk. Models and Management, Vol. 2, Cornell University, London.

Ghozali, I. 2006. Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro Semarang.

Gujarati, Damodar. 1999. Ekonomitrika Dasar, Terjemahan Sumarno Zain. Jakarta: Erlangga

Hamidah., Purwati, sari, Mardiyanti, umi. 2013. Pengaruh Corporate Governance dan Leverage Terhadap Profitabilitas Bank Yang Go Publik Di Indonesia Periode 2009-2012. Jurnal Riset Manajemen sain Indonesia, Vol 4, No 2.

Kargi, H.S. 2011. Credit risk and the performance of Nigerian Banks. Zaria: AhmaduBello University.

Kasmir. 2008. Pemasaran Bank. Edisi Revisi, Jakarta: Kencana Prenada Media Group.

Ketkar, Kusum W., & Ketkar, Suhas L. 2008. Performance and profitability of Indian banks in the post liberalization period. World Congress on National Accounts and Economic Performance Measures for Nations, May 13-17-2008, Washington DC.

Komang, D. 2011. Tantangan Ekspansi di Tengah Ketatnya Regulasi. Investor, hal.92-95.

Mawardi, Wisnu. 2005. Analisis Faktor-Faktor yang Mempengaruhi Kinerja Keuangan Bank Umum Di Indonesia. Jurnal Bisnis Strategi, Vol 14, No 1.

Naceur, S B., & Kandil, M. 2006. The impact of capital requirements on banks’ cost of intermediation and performance: The case of egypt. International of Monetery Fund, Research Department, 700 19th Street, Washington DC, 20431, USA.

Peraturan Bank Indonesia No.6/9/PBI/2004 tentang Tindak Lanjut Pengawasan Dan penetapan Status Bank. Peraturan Bank Indonesia No.6/10/PBI/2004 tentang Sistem Penilaian Tingkat Kesehatan Bank Umum.

Peraturan Bank Indonesia Nomor:10/15/PBI/2008 tentang Kewajiban Penyediaan Modal Minimum Bank Umum.




DOI: https://doi.org/10.18860/mec-j.v0i0.5223

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Editorial Office:
Faculty of Economics,
State Islamic University of Maulana Malik Ibrahim Malang
Gajayana Street 50, Malang-East Java, Indonesia 65144
Phone (+62) 341 558881, Facsimile (+62) 341 558881
e-mail: mecjournal@uin-malang.ac.id

 

 

P-ISSN 2599-3402
E-ISSN 2598-9537

Lisensi Creative Commons

MEC-J is licensed under CC-BY-SA
© All rights reserved 2017.

 

MEC-J INDEXED IN:  

                                  

Member of:

 

View My Stats