Abstract:
In Indonesia, the current bank’s performance is unstable. The purpose of this research
is to analyze the influence of management quality, asset quality, liquidity, and good
corporate governance towards bank financial performance of 6 (six) Indonesia stateowned bank from 2013 to 2017. In addition, the indicators’ measurements of
management quality ratios are Cost to Income Ratio (CIR), Total employee (TE), and
total branch (TB). For measuring asset quality ratio, the indicator is Non-Performing
Loan (NPL). For measuring liquidity ratio, the indicator is Loan to Deposit Ratio
(LDR). For measuring good corporate governance ratio, the indicator is total Board of
Director (BOD). Researcher has used data from 6 (six) commercial banks in
Indonesia. The research is applied Quantitative Method with secondary data was
taken from quarterly reports of chosen banks. Specifically, researcher has
implemented multiple linear regression model. The results are valuable evidences
such as all 6 variables have simultaneous effect to ROA. Total branch and total BOD
does not have any partial significant influence towards ROA. Other independent
variables: CIR, total employee, NPL, and LDR are recognized to have partial
influence towards ROA. This research is recommended for investors, commercial
banks in Indonesia, and more variables should be recommended to apply to know the
influence on bank financial performance for the future research.
