PENGARUH CAPITAL ADEQUACY RATIO (CAR) DAN LOAN TO DEPOSITRATIO (LDR) TERHADAP TINGKAT PENGEMBALIAN MODAL (ROE) PADA BANK UMUM YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

ABSTRACT

This study aims to determine the effect of CAR and LDR toward return on capital (ROE) on Commercial Banks listed in the Stock Exchange for the period 2016-2018. Whereas CAR and LDR as independent variables and ROE as dependent variables. ROE shows the comparison between net income after tax and total equity.

The population in this study is a Commercial Bank registered in the Indonesian Stock Exchange which has published its financial statements for the period of 2016-2018 as many as 37 banks. The sample technique in this study is purposive sampling method, namely sampling techniques with certain considerations or criteria. The data analysis method used in this study is multiple linear regression analysis and hypothesis testing using the F test and t test. Besides that, a normality test and a classic assumption test were also carried out. The  results of this research show that the independent variable CAR has a significant negative effect and the LDR has a positive but not significant effect on the dependent variable (ROE). If the CAR is getting low it will be the profitability of the bank higher. On the contary, if the value of the LDR higher it will be the profit obtained more lower.

Keywords: Capital Adequacy Ratio, Loan to Deposit Ratio, Return On Equity