THE EFFECT OF ASSET UTILIZATION EFFICIENCY, CAPITAL ADEQUACY RATIO ON PROFIT GROWTH WITH BANK SIZE AS MODERATION VARIABLE OF BANKING SECTOR LISTED ON THE INDONESIA STOCK EXCHANGE

Abstract

This study aims to analyze the effect of Asset Utilization Efficiency and Capital Adequacy Ratio on Profit Growth, with Bank Size as a moderating variable in the banking sector listed on the Indonesia Stock Exchange. The research employs a quantitative approach with secondary data collected from the annual financial reports of banks listed on the IDX for the period 2019–2023. The sample was selected using purposive sampling, resulting in a total of 17 banks as research objects. The analytical method used is Moderated Regression Analysis (MRA) to test the direct and moderating effects. The results indicate that Asset Utilization Efficiency has negative non-significant effect on Profit Growth, while Capital Adequacy Ratio shows a negative and significant effect. Furthermore, Bank Size is proven to moderate the relationship between Asset Utilization Efficiency and Profit Growth, but does not significantly moderate the effect of Capital Adequacy Ratio on Profit Growth.