Bank fundamentals and equity financing in Indonesia

Muchammad Rifqi Maulana, Sylva Alif Rusmita

Research output: Contribution to journalArticlepeer-review

Abstract

This study aims to analyse the influence of Bank Stability, Bank Size, Mudharabah Deposits, Profit Sharing Level, Non-Performing Financing and Operational Efficiency Ratio (BOPO) to the proportion of equity-based financing from March 2014 till March 2019. The data used for this study is secondary data gathered from Sharia Indonesia Banking Statistic on Financial Services Authority Website, which provides a quarterly report running from December 2013 till March 2019. In determining the sample, a purposive sampling method is used with 11 Islamic commercial banks as research samples. This study uses a quantitative approach with the panel data regression analysis technique. The results of this study show partially, that the variables of Bank Stability, Bank Size, Mudharabah Deposits and Operational Efficiency Ratio (BOPO) have a significant positive effect and that alternatively that the variables of Profit-Sharing Level and Non-Performing Financing have insignificant effects. Nevertheless, the variables Bank Stability, Bank Size, Mudharabah Deposit, Profit Sharing Level, Non-Performing Financing and Operational Efficiency Ratio (BOPO) have a significant effect on the proportion of equity-based financing in Sharia commercial banks in Indonesia.

Original languageEnglish
Pages (from-to)197-216
Number of pages20
JournalInternational Journal of Innovation, Creativity and Change
Volume9
Issue number8
Publication statusPublished - 2019

Keywords

  • Bank fundamentals
  • Equity financing
  • Islamic commercial banks
  • Profit and loss sharing financing

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