THE INFLUENCE OF NIM, BOPO, LDR, AND SIZE TOWARD RETURN ON ASSETS (ROA) AND ITS RELATIONS WITH TECHNICAL EFFICIENCY ON BANKS (BUKU 4) IN INDONESIA

Abstract

This study aims to know the influence of NIMe BOPOe LDRe and Size toward Return on Assets (ROA) and its relations with technical efficiency. To measure the technical efficiency of the banke this study uses Data Envelopment Analysis (DEA) approach. This study also uses the multiple regression analysis method and takes banks BUKU 4 in Indonesia during the period of the first quarter of 2018 to the fourth quarter of 2020 as the sample. The finding also reveals that there is a weak correlation between technical efficiency and ROA. Meanwhilee NIM and Size have a positive significant impact on ROA. BOPO has a negative significant impact on ROA. Meanwhilee LDR has a positive insignificant impact on ROA. Simultaneouslye those independent variables have a significant effect on ROA. Among the independent variablese NIM is the most significant towards ROA.