Tegar Prasetya Analysis of Macroeconomic Influence Return on Assets Banking Study on Conventional Commercial Banks in Indonesia for the Year 2018–2020 (original) (raw)

Abstract

This study aims to analyze the effect of macroeconomic variables on the return on banking assets. The data processing method used by the researcher is using the Vector Error Correction Model (VECM) as a data analysis tool and this study confirms that the extent to which it examines the positive and significant influence between macroeconomic variables on the return on banking assets. The data obtained is secondary data based on financial statements within a period of 3 years using monthly time series data. The results of this study indicate that there is a positive and significant effect on the exchange rate and CPI variables while it is negative and significant on the inflation, interest rate and IPI variables resulting from the long-term VECM estimation. While the results show that there is a positive and significant effect on the interest rate and CPI variables and a significant negative on the inflation variable, positive and insignificant on the exchange rate variable, negative...

Loading...

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

References (20)

  1. Aviliani, Siregar H., Maulana T.N.A., Hasanah H. "The Impact of Macroeconomic Condition on The Banks Performance in Indonesia," Bul Ekon Monet Dan Perbank, vol. 17, pp. 379-402, 2015. https://doi.org/10.21098/bemp.v17i4.503.
  2. 2] Abusomwan Success, "Macroeconomic Performance and Performance Nexus Banking Industry: An Perfectual Evidence From Nigeria," Glob J Manag Bus Res E Mark, vol. 18, pp. 33-41, 2018.
  3. S., Mehar A. Riaz, "Impact of Bank Specific and Macroeconomic Variables on the Performance of Commercial Banks of Nepal," Rom Econ J, vol. 16:, pp. 1-110, 2013.
  4. U. Kingdom, C. N. Simiyu, L. Ngile, "Effect of Macroeconomic Variables on Profitability of Commercial Banks Listed in the Nairobi Securities Exchange," Int J Econ Commer Manag,vol. III, pp. 1-16, 2015.
  5. J. Peyavali, S. Sheefeni, "The Macroeconomic Determinants of Profitability among Commercial Banks in Namibia," J Emerg Issues Econ Financ Bank,vol. 4, pp. 1414-31, 2015.
  6. S. Widyaningrum, "Analysis the Effect of Macroeconomic Indicators and Specific-Firm Characteristic as Determinant Profitability of Islamic Banks in Asia," Glob Rev Islam Econ Bus, vol. 2, pp. 85-97, 2014.
  7. Y. C. Pratama, "Macroeconomic Variable and It's Influence On Performance of Indonesian Islamic Banking," Al-Iqtishad J Ilmu Ekon Syariah, vol. 7, pp. 59-72, 2015.
  8. M. A. Emase, Effect of Macroeconomic Factors on The Profitability of Commercial Banks Listed at The Nairobi Securities Exchange in Kenya. KCA University, 2017.
  9. L. Isaac, "Assessing the Impact of Exchange Rate Risk on Banks Performance in Nigeria," J Econ Sustain Dev, vol. 6, pp.1-13, 2015.
  10. A. Combey, A. Togbenou, "The Bank Sector Performance and Macroeconomics Environment: Empirical Evidence in Togo," Int J Econ Financ, vol. 9, pp. 180-8, 2017. https://doi.org/10.5539/ijef.v9n2p180.
  11. E. O. Kiganda, "Effect of Macroeconomic Factors on Commercial Banks Profitability in Kenya: Case of Equity Bank Limited.," J Econ Sustain Dev, vol. 5, pp. 46-56, 2014.
  12. I. O. Osamwonyi, C. I. Michael, "The Impact of Macroeconomic Variables on the Profitability of Listed Commercial Banks In Nigeria," Eur J Account Audit Financ Res, vol. 2, pp. 85-95, 2014.
  13. B. P. Neupane, "Profitability Determinants of Nepalese Commercial Banks," Press Procedia, vol. 1, pp. 40-5, 2020. https://doi.org/10.17261/pressacademia.2020.1345.
  14. A. Akbar, H. Thamrin, "Analysis of Effect of CAPR, DAR, ROA and Size on Tax Avoidance," Dinasti Int J Manag Sci, vol. 1, pp. 706-18, 2020. https://doi.org/10.31933/dijms.v1i5.285.
  15. S. Gerlach, W. Peng, C. Shu, "Macroeconomic Conditions and Banking Performance in Hong Kong SAR: A Panel Data Study," BIS Pap, vol. 22, pp. 481-97, 2003.
  16. A. Al-Harbi, "The Determinants of Conventional Banks Profitability in Developing and Underdeveloped OIC Countries," J Econ Financ Adm Sci, vol. 24, pp. 4-28, 2019. https://doi.org/10.1108/JEFAS-05-2018- 0043.
  17. M. Ekananda, "Analysis of the Macroeconomic Impact towards the NPL National Banking in Indonesia: The Study," Eur Res Stud J, vol. 20, pp. 396-416, 2017. https://doi.org/10.35808/ersj/717.
  18. D. Clichici, T. Colenicova, "The Impact of Macroeconomic Factors on Non-Performing Loans in The Republic of Moldova," J Financ Monet Econ, vol. 1, pp. 73-8, 2014.
  19. A. Hakim, Statistika Deskriptif untuk Ekonomi dan Bisnis. Yogyakarta: Ekonisia; 2006.
  20. N. Huda, H. R. Idris, M. E. Wiliasih, Ekonomi Makro Islam: Pendekatan Teoritis, 2018.