Abstract :
Abstrack:Effect Of Capital Adequacy Ratio And Non Performing Loan On Profitability On Banking Companies Listed On The Indonesia Stock Exchange Period The 2015-2019
This study aims to examine the relationship between capital adequacy ratios and non-performing loans with disclosure of profitability. The population in this study are banking companies listed on the Indonesia Stock Exchange for the period 2015-2019. Purposive sampling technique was used in sampling with the number of samples obtained, namely 15 banking companies with a total observations of 75 observations. The data analysis method used is multiple regression analysis with panel data regression method. The test results show that the capital adequacy ratio variable has a negative and insignificant relationship with the profitability of banking companies and the non-performing loan variable has a negative and significant relationship with the profitability of banking companies. Adjusted R-square value is 0.207741, which means that the variable capital adequacy ratio and non-performing loan are able to explain 20% of the variation in the profitability variable and the remaining 80% is explained by other variables not examined.
Keywords: capital adequacy ratio, non-performing loans, profitability.