Research Paper
Year: 2020 | Month: June | Volume: 7 | Issue: 6 | Pages: 96-105
Analysis of Corporate Social Responsibility and Ratio of Bank's Health on Banking Financial Performance
Dina Hastalona
Department of Management, STIE ITMI Medan North Sumatera, Indonesia
ABSTRACT
This study aims to look at the effect of Corporate Social Responsibility (CSR) and Interest Rate Risk (IRR), Non Performing Loans (NPL), Loans to Deposit Ratio (LDR), Net Interest Margin (NIM), Operational Expenses and Operating Income (BOPO), Capital Adequacy Ratio (CAR) Against Return On Assets (ROA). This research is associative in nature and the type of data used is secondary data. Data obtained from foreign exchange bank financial statements that have been published on the Indonesia Stock Exchange. The sample of this study amounted to 30 Foreign Exchange Banks. The technique used is multiple panel linear regression technique using the Random Effect Model approach. The results of the study simultaneously show that Interest Rate Risk (IRR) and Capital Adequacy Ratio (CAR) have a positive and significant effect on Return On Assets (ROA). Non Performing Loans (NPL), Net Interest Margin (NIM) and Corporate Social Responsibility (CSR) have positive and not significant effect. Loan to Deposit Ratio (LDR), Operating Expenses and Operating Income (BOPO) have a negative and not significant effect on Return on Assets (ROA).
Keywords: Foreign Exchange Bank, IRR, NPL, LDR, NIM, BOPO, CAR, CSR, ROA.
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