The Effect of Bank-Specific Factors on Profitability of Commercial Banks Listed on the Indonesia Stock Exchange

Henny Setyo Lestari; Bahtiar Usman; Syofriza Syofyan; Lavlimatria Esya; Hartini Hartini; Oknovia Susanti

doi:10.2991/978-94-6463-350-4_28

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The Effect of Bank-Specific Factors on Profitability of Commercial Banks Listed on the Indonesia Stock Exchange

Authors

Henny Setyo Lestari¹^{, *}, Bahtiar Usman¹, Syofriza Syofyan¹, Lavlimatria Esya¹, Hartini Hartini¹, Oknovia Susanti²

¹Management Study Program, Faculty of Economic and Business, Universitas Trisakti, Jakarta, Indonesia

²Department of Mechanical Engineering, Faculty of Engineering, Universitas Andalas, Padang, Indonesia

^*Corresponding author. Email: henny_setyo_lestari@trisakti.ac.id

Corresponding Author

Henny Setyo Lestari

Available Online 10 January 2024.

DOI: 10.2991/978-94-6463-350-4_28 How to use a DOI?
Keywords: Deposit; Management Efficiency; Asset Quality; Liquidity; Profitability; Capital Ratio; Bank Size
Abstract: This study examines the influence of specific factors on the profitability of conventional commercial banks listed on the Indonesia Stock Exchange for the 2016–2020 period. This study uses purposive sampling with a sample of 41 conventional commercial banks. The results show that bank size does not affect profitability. The capital, deposit, and liquidity ratio variables have a significant negative effect on profitability. Meanwhile, the variables of management efficiency and asset quality have a significant positive effect on profitability. This research is important so that banks can determine from the start what factors can affect their profitability, with banks having to maintain a level of capital according to Bank Indonesia standards, effectively monitoring bank operations, and selective supervision in lending to increase profitability.
Copyright: © 2023 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
Series: Advances in Economics, Business and Management Research
Publication Date: 10 January 2024
ISBN: 978-94-6463-350-4
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-350-4_28 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Henny Setyo Lestari
AU  - Bahtiar Usman
AU  - Syofriza Syofyan
AU  - Lavlimatria Esya
AU  - Hartini Hartini
AU  - Oknovia Susanti
PY  - 2024
DA  - 2024/01/10
TI  - The Effect of Bank-Specific Factors on Profitability of Commercial Banks Listed on the Indonesia Stock Exchange
BT  - Proceedings of the International Conference on Entrepreneurship, Leadership and Business Innovation (ICELBI 2022)
PB  - Atlantis Press
SP  - 300
EP  - 306
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-350-4_28
DO  - 10.2991/978-94-6463-350-4_28
ID  - Lestari2024
ER  -

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