Effect of CAR, NPL, and BOPO on NIM with ROE as a moderating variable

https://doi.org/10.21744/irjmis.v8n3.1469

Authors

  • I Wayan Dedik Widana Economics and Business Faculty, Udyana University, Denpasar, Indonesia
  • Gerianta Wirawan Yasa Economics and Business Faculty, Udayana University, Denpasar, Indonesia
  • I Gusti Ngurah Agung Suaryana Economics and Business Faculty, Udayana University, Denpasar, Indonesia

Keywords:

capital adequacy ratio, net interest margin, non performing loan, operating expenses operating income, return equity

Abstract

This study aims to obtain empirical evidence about the effect of CAR, NPL and BOPO on NIM and examine the role of ROE in moderating the effect of CAR, NPL, and BOPO on NIM. This study uses purposive sampling method. The data used is secondary data obtained from the financial statements of banking companies listed on the Indonesia Stock Exchange in the 2015-2019 period. Data analysis techniques using moderated regression analysis (MRA) test. The result of the analysis shows that CAR has a positive effect on NIM. NPL and BOPO has a negative effect on NIM. The moderating variable ROE strengthens the effect of CAR on NIM but weakens the effect of NPL and BOPO on NIM.

Downloads

Download data is not yet available.

References

Afifah, U., Sari, R. N., Anugerah, R., & Sanusi, Z. M. (2015). The effect of role conflict, self-efficacy, professional ethical sensitivity on auditor performance with emotional quotient as moderating variable. Procedia Economics and Finance, 31, 206-212. https://doi.org/10.1016/S2212-5671(15)01222-8

Bank Indonesia. (2014). Kodifikasi Peraturan Bank Indonesia tentang Penilaian Tingkat Kesehatan Bank. Diakses pada 15 November 2019. https://www.bi.go.id/

Dewi, G. A. P. I. L., & Triaryati, N. (2017). Pengaruh faktor internal dan eksternal bank terhadap Net Interest Margin di Indonesia. E-Jurnal Manajemen, 6(6), 3051-3079.

Ghozali, A., Sukmara, R. B., & Aulia, B. U. (2016). A comparative study of climate change mitigation and adaptation on flood management between Ayutthaya City (Thailand) and Samarinda City (Indonesia). Procedia-Social and Behavioral Sciences, 227, 424-429. https://doi.org/10.1016/j.sbspro.2016.06.096

Kashdan, T. B., & Breen, W. E. (2008). Social anxiety and positive emotions: A prospective examination of a self-regulatory model with tendencies to suppress or express emotions as a moderating variable. Behavior Therapy, 39(1), 1-12. https://doi.org/10.1016/j.beth.2007.02.003

Khanh, H. T., & Tra, V. T. (2015). Determinants of net interest margin of commercial banks in Vietnam. Journal of Economics and Development, 17(2), 69-82.

Koostanto, H.B., Hermanto S., Hendro S. (2016). Determinants of Net Interest Margin: A Case Study of Bank XYZ in Indonesia. Research Journal of Finance and Accounting, 7(14).

Manurung, D., Suhartadi, A. R., & Saefudin, N. (2015). The influence of organizational commitment on employee fraud with effectiveness of internal control and organizational justice as a moderating variable. Procedia-Social and Behavioral Sciences, 211, 1064-1072. https://doi.org/10.1016/j.sbspro.2015.11.142

Million, L. J., Utary, A. R., & Irwansyah, I. (2018, March). Pengaruh non performing loan dan capital adequacy ratio serta biaya operasional terhadap net interest margin dan return on asset. In Prosiding SNMEB (Seminar Nasional Manajemen dan Ekonomi Bisnis).

Munce, S. E., Weller, I., Blackmore, E. K. R., Heinmaa, M., Katz, J., & Stewart, D. E. (2006). The role of work stress as a moderating variable in the chronic pain and depression association. Journal of psychosomatic research, 61(5), 653-660. https://doi.org/10.1016/j.jpsychores.2006.03.048

Purba, P. L., & Triaryati, N. (2018). Pengaruh CAR, NPL, BOPO, dan LDR terhadap Net Interst Margin pada Perusahaan Perbankan yang Terdaftar di BEI. E-Jurnal Manajemen Unud, 7(1), 387-411.

Salvatore, D. (2011). Ekonomi Manajerial. Buku 1. Jakarta: Salemba Empat.

Wijayanto. (2016). Ekonomi Tersandera Bunga Tinggi, Pemerintah Indonesia akan Akhiri Oligopoli Perbankan. pressreader. https://www.pressreader.com/

Zainab, A. D., Wahyudi, S., & Mahfud, M. K. (2017). Analisis pengaruh non performing loan, loan to deposit ratio, dan bopo terhadap return on asset dengan mediasi net interest margin (Studi pada Industri Perbankan Umum di Indonesia yang Terdaftar di Bursa Efek Indonesia Tahun 2011-2015) (Doctoral dissertation, Diponegoro University).

Zarefar, A., & Zarefar, A. (2016). The Influence of Ethics, experience and competency toward the quality of auditing with professional auditor scepticism as a Moderating Variable. Procedia-Social and Behavioral Sciences, 219, 828-832. https://doi.org/10.1016/j.sbspro.2016.05.074

Published

2021-04-06

How to Cite

Widana, I. W. D., Yasa, G. W., & Suaryana, I. G. N. A. (2021). Effect of CAR, NPL, and BOPO on NIM with ROE as a moderating variable. International Research Journal of Management, IT and Social Sciences, 8(3), 219-227. https://doi.org/10.21744/irjmis.v8n3.1469

Issue

Section

Peer Review Articles

Most read articles by the same author(s)