scholarly journals How Do Banks Determine Their Capital Buffer? Evidence from Indonesian Bank

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Mahendra Ryansa Gallen Gagah Pratama ◽  
Tyas Effendi ◽  
Lina Nur Hidayati ◽  
Alfonso Mendoza-Velázquez
Keyword(s):  
Financial Management ◽  
Commercial Banks ◽  
Government Regulation ◽  
Negative Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Income Diversification ◽  
Return On Equity ◽  
Minimum Capital ◽  
Buffer Requirement

Objective: This study aims to investigate how banks determine their capital buffer. Return on Equity (ROE), Non-Performing Loans (NPL), Capital Buffer Lag (BUFFt-1), Loan to Total Assets (LOTA), and Income Diversification (IDIV) are some of the variables examined in this study. Research Design & Methods: Purposive sampling was used to collect samples for this study. It was 20 of the 42 conventional commercial banks that were listed on the Indonesia Stock Exchange in 2012-2016. In this study, multiple regression analysis was used, as well as the ordinary and two-stage least squares methods. Findings: The results of this study have shown that the capital buffer has a negative impact on return on equality (ROE) and income diversification (IDIV). The capital buffer was affected by Lag of Capital Buffer. This research examines how a bank can make a profit from the negative impact of ROE. Based on the results of the tests, the Indonesian Bank has not pursued the highest possible capital buffer. Implications & Recommendations: Companies will use their profit to further profitable activities when they fulfill a minimum capital buffer requirement. Contribution & Value Added: The results of this study try to give an idea for the management of capital and capital buffers and to determine the ideal strategy for investors and banks to meet the Basel and Government regulation. This research tries to add insight into the internal factors that determine capital buffers at conventional commercial banks in Indonesia, as well as research references in the field of financial management, particularly capital buffers.

scholarly journals PENGARUH HUMAN CAPITAL, STRUCTURE CAPITAL, DAN PHYSICAL CAPITAL TERHADAP KINERJA PERUSAHAAN PERBANKAN DI INDONESIA

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Agustinus Jeneo
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Negative Impact ◽  
Stock Exchange ◽  
Value Added ◽  
Physical Capital ◽  
Return On Equity ◽  
Result Show ◽  
Capital Efficiency ◽  
The Impact

The objective of this study are to analyze the impact of intellectual capital (HumanCapital, Structure Capital and Physical Capital) on company’s financial performance Return on Assets (ROA) dan Return On Equity (ROE). This research used banking company data that listed in Indonesia Stock Exchange (IDX) 2011-2012. The model that used to measure intellectual capital was Pulic model agregatly-using Value Added Intellectual Coefficient (VAIC™) or separately-using Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE), and Physical Capital/ Capital Employed Efficiency (CEE). The result show: (1) Human Capital Efficiency (HCE) not significant  impact on ROA, (2) Human Capital Efficiency (HCE) not significant impact on ROE, (3) Structure Capital Efficiency (SCE) not significant impact on ROA, (4) Structure Capital Efficiency (SCE) negative impact on ROE (5) Physical Capital/Capital Employed Efficiency (CEE) has a positive significant impact on ROA, (6) Physical Capital/Capital Employed Efficiency (CEE) has a positive significant impact on ROE

scholarly journals Loan Loss Provision and the Profitability of Commercial Banks: Evidence from Jordan

2016 ◽  
Vol 11 (12) ◽  
pp. 242 ◽  
Author(s):  
Mohammad Alhadab ◽  
Saba Alsahawneh
Keyword(s):  
Commercial Banks ◽  
Negative Impact ◽  
Stock Exchange ◽  
Negative Consequences ◽  
Loan Loss ◽  
Return On Assets ◽  
Return On Equity ◽  
Loan Loss Provision ◽  
Amman Stock Exchange ◽  
The Impact

<p>The purpose of this study is to examine the impact of loan loss provision on the profitability of Jordanian commercial banks. While the impact of loan loss provision on the profitability of banks has been examined by prior research, this study is the first to examine this relationship using Jordanian data. By examining a Jordanian sample of 13 banks that listed on Amman Stock Exchange (ASE) over the period 2004-2014, this study provides the first evidence that loan loss provision has a negative impact on the profitability of Jordanian commercial banks. This evidence suggests that Jordan banks adjust their loan loss provision due to several motives and, this in turn, leads to negative consequences for their profitability. Return on assets (ROA) and return on equity (ROE) are employed as a proxy of the profitability in this study. </p>

scholarly journals The Effect of Liquidity, Leverage and Bank’s Size on Bank’s Profitability of Indonesian Listed Bank

2021 ◽  
Vol 12 (2) ◽  
pp. 26
Author(s):  
Henny Setyo Lestari
Keyword(s):  
Negative Affect ◽  
Commercial Banks ◽  
Banking Sector ◽  
Negative Impact ◽  
Stock Exchange ◽  
Return On Equity ◽  
Independent Variables ◽  
Net Interest Margin ◽  
The Impact ◽  
Made In

<p><em>The purpose of this study is to determine the impact of liquidity, leverage and bank size on profitability in Indonesian conventional banking sector</em><em> as the influencer of economic movements in this country</em><em>. This study employed the total of  29 commercial banks listed on Indonesia Stock Exchange during the period of 2010-2019. There are total of 290 observations made in the study. The dependent variable used in this study is bank’s profitability measured by return on asset (ROA), return on equity (ROE) and net interest margin (NIM). The independent variables are liquidity</em><em> measured by loan to deposit ratio (LDTR)</em><em>, leverage</em><em> measured by equity to asset ratio (ETAR)</em><em> and bank size</em><em> measured by natural log of total asset (LNTA) </em><em>. The result shows that liquidity was observed to has insignificant negative impact on bank’s ROA and ROE, and positively affect NIM but statistically insignificant. While leverage has negative but insignificant  impact on ROA and NIM, and significanlly has negative affect on ROE. Meanwhile, bank size has positive and significant impact on ROA, then has insignificant negative impact on ROE, and significantly has negative affect on NIM.This study could help the internal management of Indonesian conventional banking sector to make policy and decision in order to improve bank’s profitability.</em><em></em><em></em></p>

scholarly journals Dividend Policy and Share Price volatility: Evidence From Pakistan Stock Exchange of Listed Commercial Banks

2019 ◽  
Vol 5 (1) ◽  
pp. 35
Author(s):  
Laeeq Ahmad ◽  
Yasir Iftikhar ◽  
Sarmad Ejaz ◽  
Waqas Baig ◽  
Kashif Nadeem ◽  
...  
Keyword(s):  
Commercial Banks ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Price ◽  
Price Volatility ◽  
Share Price ◽  
Retention Ratio ◽  
Return On Equity

This study examines the all possible dividend policy effect on commercial banks stock price listed at Pakistan stock exchange. The study covers 17 listed commercial banks for the time period 2014 to 2017. To analyze secondary data multiple regression analysis was applied using Stata with the model (MP) Market Price Per Share as the dependent variable and (EPS) Earning Per Share, (ROE) Return on Equity, (RR) Retention Ratio and (DY) Dividend Yield are independent variables. Descriptive statistics were applied to data to check mean, median, maximum and minimum value. The finding of the study shows that EPS shows a highly significant positive impact on the share MP and the other three independent variable return on equity, dividend yields, and retention ratio also show a significant but negative impact on the share MP. These results support the finding of previous studies done by another researcher in the past.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING (Studi Pada Perusahaan Perbankan Di Bursa Efek Indonesia)

2018 ◽  
Vol 5 (2) ◽  
pp. 45-58
Author(s):  
G. A Sri Oktaryani ◽  
I Nyoman Nugraha Ardana P ◽  
Iwan Kusuma Negara ◽  
Siti Sofiyah ◽  
I Gede Mandra
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Price ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Significant Direct Effect

This research examines the effect of Good Corporate Governance (GCG) on firm value by using profitability as intervening variable.  Profitability is proxied by Return On Asset (ROA) and Return On Equity (ROE). This study used a quantitative approach and path analysis. The population consists of 35 firms that were listed in Banking sector of Indonesian Stock Exchange over period 2013 – 2015. There are 34 firms are choosen as samples which has published GCG composit index throughout observation years and has not done corporate action that could affect the stock price directly. The findings show that GCG has positive and significant direct effect on firm value. Furthermore, ROA has positive impact on firm value; meanwhile ROE has negative impact on firm value. The results also show that the better the implementation of GCG the higher the Return on Asset. Moreover, the indirect effect of GCG on firm value through profitability is not significant. Keywords: GCG, profitability, ROA, ROE, firm value.

scholarly journals PENGARUH ECONOMIC VALUE ADDED (EVA) DAN RASIO PROFITABILITAS TERHADAP HARGA SAHAM

2018 ◽  
Vol 2 (2) ◽  
pp. 290-303
Author(s):  
Venni Agnatia ◽  
Diah Amalia
Keyword(s):  
Coal Mining ◽  
Stock Price ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Return On Equity ◽  
Total Data ◽  
Profitability Ratios

The purpose of this research is to analyze the effect of Economic Value Added (EVA) and profitability ratios partially and simultaneously to the coal mining company’s stock price. The profitability ratios used in this research as independent variable are Return on Asset (ROA), Return on Equity (ROE), Return on Investment (ROI) and Net Profit Margin (NPM) although the stock price as the dependent variable. The samples used were 14 companies from 25 coal mining companies listed in Indonesia Stock Exchange during the period 2011-2017 so total data processed is 98 samples. This research used linear regression analysis with Eviews version 9. The result indicated that partially the variable ROA and ROI has significant positive effect on stock price. EVA, ROE and NPM does not affect the stock price. All variables simultaneously affect to the stock price.   Keyword: EVA, ROA, ROE, ROI, NPM, Stock Price

scholarly journals effect of financial ratios on company value in oil and gas mining subsectors in Indonesia stock exchange

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Muhammad Ardian ◽  
Mohammad Adam ◽  
Marlina Widiyanti ◽  
Isnurhadi Isnurhadi
Keyword(s):  
Firm Value ◽  
Oil And Gas ◽  
Negative Impact ◽  
Stock Exchange ◽  
Primary Concern ◽  
Return On Equity ◽  
Company Value ◽  
Return On Capital ◽  
Asset Growth ◽  
Turn Over

Firm value is influenced by elements outside and within the organization. . They were selected by purposive examination technique. The examination procedure used is Panel Data Regression Analysis. The consequences of such examinations lead to the demonstration that Return on Equity has a substantial beneficial return on firm value, suggesting that return on capital through increased benefits will build financial support certainty. Conversely, the Debt to Asset Ratio has a critical negative impact on firm value. This implies that the use of extreme liabilities can sustain the business. Owners and top administrative organizations should be careful about the use of obligations. Operational productivity and expansion of the number of items must be the primary concern to build Return on Equity. Different factors, such as Asset Growth, Total Asset Turn Over, and Current Ratio, have no impact on firm value.

scholarly journals Effect Of Bank And Macro Economic Performance On Bank Capital Supporters In Indonesia

2019 ◽  
Vol 19 (2) ◽  
pp. 137
Author(s):  
Putra Indra ◽  
Abraham Prima ◽  
Farah Margaretha Leon
Keyword(s):  
Stock Exchange ◽  
Bank Performance ◽  
Bank Capital ◽  
Method Of Moment ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Performance Variables ◽  
Minimum Capital ◽  
Net Profit ◽  
The Difference

<p><em>This study was conducted to examine the effect of bank performance and macroeconomics on capital buffer in banks listed on the Indonesia stock exchange in the 2014-2018 period. There are 26 banks that become the sample of this study after purposive sampling. The capital buffer used is the difference between the Capital Adequate Ratio and the minimum capital determined by the regulator. While the independent variables used consist of bank performance, namely Return on Equity, Bank Size, Liquidity, Non-Performing Loans, Net Profit, Loan Growth and Total Loans over Total Assets. Macroeconomic variables also become a factor that is analyzed on the effect of bank capital buffer. By using the Generalized Method of Moment (GMM) regression model, it can be seen that the bank's performance variables measured through Return on Equity, Liquidity, Net Profit and Total Loan over Total Assets have a significant effect on banking capital buffer in Indonesia. Whereas macroeconomic variables measured through GDP do not have a significant effect on banking capital buffer in Indonesia.</em></p>

scholarly journals The effect of tax rate on sales tax compliance among Jordanian public shareholding corporations

Accounting ◽  
2021 ◽  
pp. 883-892 ◽  
Author(s):  
Ahmad Farhan Alshira’h ◽  
Ali Mustafa Magablih ◽  
Moh’d Alsqour
Keyword(s):  
Negative Impact ◽  
Stock Exchange ◽  
Tax Compliance ◽  
Value Added ◽  
Sales Tax ◽  
Survey Method ◽  
Tax Rate ◽  
Listed Firms ◽  
Amman Stock Exchange ◽  
The Government

Compliance to tax payment generally results in mitigating fiscal deficit and public debt, and in turn, provides funding to meet the economic and social development. However, regardless of the directed efforts of the government to increase sales tax compliance (or value added tax as it is referred to globally), Jordanian listed firms on the Amman Stock Exchange, compliance remains an issue in light of its negative impact on the government revenues. Literature dedicated to tax rate effects on sales tax compliance in the context of listed Jordanian firms on the Amman Stock Exchange has largely been lacking and as such, the study’s main objective is to examine the effect of tax rate on sales tax compliance among such firms. The study adopted a survey method with questionnaire copies distributed to 191 listed Jordanian firms. In the tabulation of data, only 169 questionnaire copies were deemed to be valid for the analysis. The formulated study hypotheses were tested using PLS-SEM and based on the results, tax rate has an insignificant effect on sales tax compliance. Future studies are recommended to provide further insight into the study determinants. The study contributes by furnishing information to and guiding policymakers and the listed Jordanian firms in enhancing sales tax compliance.

scholarly journals PENGARUH FIRM SIZE, LEVERAGE DAN PROFITABILITY TERHADAP ECONOMIC VALUE ADDED (EVA) PADA EMITEN MANUFAKTUR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 7 (2) ◽  
pp. 33-46
Author(s):  
Maharani Rahma
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Generalized Least Squares ◽  
Total Asset ◽  
Economic Value Added ◽  
Return On Equity ◽  
Independent Variables

The purpose of this research is to analyze the effect of the Firm Size, Leverage and Profitability Tto Economic Value Added on emiten manufactur in Indonesia Stock Exchange. The selected independent variables in this study are Total Asset, Debt to Equity Ratio (DER) and Return on Equity (ROE) and the dependent varable is Economic Value Added (EVA). This research was conducted on manufactur listed issuers in Indonesia Stock Exchange in 2010-2014 period. Research carried out by using 59 sampels based on stratefied random sampling method. Panel Data Regression Models with Generalized Least Squares (GLS) method is used to data analysis and hipothesis testing. The results of this research and hypothesis testing indicate that: (1) Partially,Total Assets,ROE have a possitively relationships with significantly affect to the EVA and DER have a possitvely relationships with not significantly affect to the EVA.(2) Total Asset, DER and Profitability simultaneously have possitively relationship with  significantly affect to the EVA. (3) model in this study showed a weak pattern relationships between the dependent variable with the independent variables. Keywords : Firm Size, Leverage, Profitability, Economic Value Added, panel data

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