ANALYSIS THE INFLUENCE OF CAR, LDR, NPL, AND OCOI TOWARD ROA (CASE STUDY OF ISLAMIC BANKS IN INDONESIA FOR PERIOD 2011 - 2013)

Abstract

This study is about to analyze the influence of Capital Adequacy Ratio, Loan to Deposit Ratio, Non Performing Loan, and Operational Cost to Operating Income toward Return On Asset of 8 Islamic Banks in Indonesia for period 2011-2013. The problem stated in this research that there is occurrence of gap between the theories, which have been considered true and always applied in banking industry to the existing Banking business empirical condition and strengthened by the existence of some research gap between one researcher with another. The objective of this study is to analyze the significant influence CAR, LDR, NPL, and OCOI toward ROA of Islamic Banks during period 2011–2013, partially and simultaneously. The methodology used in this study is quantitative research method using secondary data. The sampling method used is purposive sampling, which criteria is Islamic Bank in Indonesia and provided quarterly financial report and ratios in accordance with the variables that will be examined during period 2011-2013. The analysis of this research is using multiple linear regression analysis, with significant level of 0.05. The results of multiple regression shows that partially OCOI has a negative significant influence, CAR and LDR have a negative but not significant influence, and NPL have a positive but not significant influence toward ROA. While simultaneously all of the independent variables are significantly influence the ROA. The coefficient of determinant in this research is 69.5%.