scholarly journals Examining Banks Profitability and Banks Efficiency of Islamic Commercial Banks in Indonesia

2017 ◽  
Author(s):  
chandra setiawan ◽  
Onie Insany Kodratillah

This research investigates: first, the Return on Assets (ROA) determinants of Islamic commercial banks in Indonesia period of 2012Q1 – 2016Q2 using panel least square by adopting Fixed Effect Method (FEM); second, measuring the technical efficiency level using Data Envelopment Analysis (DEA) approach; third, the relationship between technical efficiency and Return on Assets (ROA) using simple regression. This research uses time series and quarterly published report data from Central Bank (Bank Indonesia). The results as follows: Size (log total assets), Operational Efficiency Ratio (OER), Net Profit Margin ratio (NPM), Financing to Deposit Ratio (FDR), and BI rate have partially and simultaneously significant effect toward Return on Assets (ROA). The average technical efficiency of Islamic commercial banks is 0.919 or 91.9%. This finding indicates that Bank Negara Indonesia Syariah (BNIS) in the research period as the most technical efficiency. It shows that in overall Islamic commercial banks is still inefficient in managing their performance. The finding reveals there is no significant relationship between Technical Efficiency and Return on Asset.

2019 ◽  
Vol IV (IV) ◽  
pp. 434-450
Author(s):  
Farhat Ullah Khan ◽  
Aman Ullah Khan ◽  
Siraj -Ud- Din

The study aimed at exploring the relationship between efficiency and profitability of private commercial banks operating in Pakistan. The efficiency represented by technical efficiency has been assessed by non-parametric data envelopment analysis approach while profitability indicated by return on assets has been computed through conventional ratio analysis for period 2009 to 2013. The analysis revealed that technical efficiency declined during the study period and remained at 89%. HMB was identified as the top-performing bank in technical efficiency while MCB remained highly profitable. Banks were then grouped based on TE and ROA. MBL, UBL, DIB, SCB, BAH, HBL and HMB observed as top-performing banks based on TE and ROA. These banks are considered a role model for other inefficient and less profitable banks. Whereas, other banks were grouped as weak, based on below-average ROA and TE scores. These banks can adopt distinct product mix or business strategies to become profitable in future.


2021 ◽  
Vol 1 (2) ◽  
pp. 77-97
Author(s):  
Indah Fresma Sari ◽  
Jaenal Effendi

This study aims to analyze the efficiency of property and real estate issuers listed in the Indonesia Sharia Stock Index (ISSI) during 2016-2020 period and the factors that influence it. In the first stage, the researcher analyzes the efficiency value of property and real estate issuers using Data Envelopment Analysis (DEA) method. In the second stage, the researcher analyzes the factors that influence the efficiency value of property and real estate issuers by using tobit regression. There are 16 issuers used in this study. The results showed that none of the issuers consistently achieved the perfect technical efficiency score (the efficiency score is equal to 1) during the study period. The same thing happened to the pure technical efficiency analysis and the efficiency scale results. The results of the tobit model regression showed that the Return on Assets (ROA) has significant positive effect and the exchange rate (LNKURS) has significant negative effect on the efficiency value of property and real estate issuers. Meanwhile, the Debt to Asset Ratio (DAR), company size (LNSIZE), and interest rate (BIRATE) do not have significant effect on the efficiency of property and real estate issuers.


2021 ◽  
Vol 8 (1) ◽  
pp. 17-24
Author(s):  
Sumi Saha

This study has examined the impact of liquidity decisions on the managerial performance of ten listed conventional private commercial banks. The required data have been collected from the five years' annual reports of the sample banks and analyzed through formulating different null hypotheses. Findings from the testing of null hypotheses with the use of the ANOVA technique reveal that there is no significant variation of different indicators of liquidity decision as well as the managerial performance of the sample banks. Findings are taken from conducting the multiple regression analysis with ordinary least square (OLS) model also indicate that the indicators of liquidity decision namely current ratio is positively and insignificantly associated with net profit ratio as well as return on equity but negatively and insignificantly associated with return on assets as well as return on investment. Moreover, the networking capital ratio as another indicator of liquidity decision is negatively and insignificantly associated with net profit ratio, return on assets as well as return on equity but positively and insignificantly associated with return on investment of the sample banks over the study period.  


2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Rachman Hakim ◽  
Tri Haryanto ◽  
Dyah Wulan Sari

AbstractRice is a staple food in East Java, and the average consumption is 100 kg/capita/year. However, rice productivity has declined dramatically in recent years. Food security can be reached by improving the technical efficiency of rice farming, especially in rice farming centers such as East Java Province. This study aims to measure technical efficiency and its determinants using two limit tobit. And it also aims to examine the effect of the technical efficiency of rice farming on food security using logit regression. Technical efficiency will be measured by using data envelopment analysis (DEA). The results show that the technical efficiency of rice farming is very low in East Java. Government assistance, irrigation, and extension have a significant effect on technical efficiency. Meanwhile, membership of farmer organization has no effect on technical efficiency. Around 69% of farmers can be categorized as food secure households. The estimation of logit regression shows that household size, income, land size, education, age, and gender significantly influence food security in East Java. Meanwhile, credit and technical efficiency did not have any significant effect.


2015 ◽  
Vol 65 (s2) ◽  
pp. 101-113 ◽  
Author(s):  
Ling Jiang ◽  
Yunyu Jiang ◽  
Zhijun Wu ◽  
Dongsheng Liao ◽  
Runfa Xu

In the era of knowledge economy, a country’s economic competitiveness depends largely on the development level of high-tech industry. This paper evaluates the efficiency of China’s high-tech industry in 31 provinces in 2012 with data envelopment analysis. The empirical results are summarized as following. Firstly, when the effects of exogenous environmental variables are not controlled, the comprehensive technical efficiency of 31 provinces will be overestimated, the pure technical efficiency will be underestimated, and the scale efficiency value will be overestimated. Secondly, after eliminating the environmental impact, the comprehensive technical efficiency of 31 provinces with the average of 0.395 is rather low, due to the low scale efficiency.


2018 ◽  
Vol 286 (1-2) ◽  
pp. 703-717
Author(s):  
Murilo Wohlgemuth ◽  
Carlos Ernani Fries ◽  
Ângelo Márcio Oliveira Sant’Anna ◽  
Ricardo Giglio ◽  
Diego Castro Fettermann

Author(s):  
Abuzar M. A. Eljelly

This study examines the relationship between firm ownership and corporate performance in Saudi Arabia, using a sample of Listed Private Companies (LPCs) and Listed Government Related Companies (LGRCs). The study compares the operating and market performance of the LPCs and LGRCs during the period 2000-2003 and found that, in general, LGRCs outperform or match the performance of LPCs. More specifically, the study finds that LGRCs tend to mostly outperform LPCs in terms of profitability, as measured by Return on equity (ROE) and Net Profit Margin (NPM), operating efficiently, as measured in terms of Return on assets (ROA), and match them in their stock market risk adjusted performance. The study concludes that these results may have implications for the issue of privatization programs which the government has recently started.


2012 ◽  
Vol 10 (1) ◽  
pp. 97-109 ◽  
Author(s):  
Sam Ngwenya ◽  
Mahlomolo Khumalo

The study investigates the relationship between CEO compensation and performance of State Owned Enterprises (SOEs) in South Africa, using data for the period 2009 to 2011. The results indicated that there exist no positive relationship between CEO compensation and SOEs performance as measured by return on assets. The results also indicated a positive relationship between CEO compensation (base salary) and the size of SOEs as measured by total revenue and number of employees. The results suggest that board members of SOEs in South Africa should hold CEOs accountable for the performance of SOEs, and should not pay huge salaries and bonuses to non performing CEOs.


Sign in / Sign up

Export Citation Format

Share Document