Determinants of Banking Performance for Commercial Banks on Indonesia Stock Exchange

Determinants of Banking Performance for Commercial Banks on Indonesia Stock Exchange

Bank-specific Factors, Bank Performance, Inflation Rate, Panel Data Regression

This study examines the determinants of Indonesian banking performance caused by global uncertainty such as geopolitical conflicts and post-pandemic conditions. Thestudy adopted quantitative approach and usedsamplesby34 commercial banks listed on Indonesia Exchange Stock period 2017 to 2023. Panel data regression used as analytical method. This study used bank size, bank capital, liquidity, credit risk, and inflation rate as independent variables. Furthermore, bank performance was measured by return on asset. The findings of this study were bank size and inflation rate positively impact on return on assetwhile the other variables have no relationshipon bank performance. This study could be usedas reference for future research and for banking management decision-making

Afrizal Elgi1, Reniati Karnasi2

https://dinastipub.org/DIJEFA/article/view/2531/1636

Universitas Trisakti

15April 2024

elgiafrizal@gmail.com

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