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AUTHOR(S):

M. Chabachib, Aji Yudha, Udin Udin

 

TITLE

The Role of Firm Size on Bank Liquidity and Performance: A Comparative Study of Domestic and Foreign Banks in Indonesia

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ABSTRACT

The purpose of this study is (1) to find out the effect of Non-Performing Loan (NPL), Net Interest Margin (NIM), Non-Interest Income, and Loan to Deposit Ratio (LDR) to Return on Assets (ROA) with size as control variable; and (2) to compare whether there is a difference between domestic and foreign banks of the period 2012 – 2017. The sample of this study is 228 domestic and foreign banks listed in Indonesia Stock Exchange (IDX) of the period 2012 – 2017. The result of the analysis show that (1) in the domestic bank, NPL has a negative effect on ROA; NIM has a positive effect on ROA; and (2) in foreign banks, NPL has a negative effect ROA; NIM has a negative effect; LDR has a negative effect ROA. Further, size becomes a control variable and there is no difference between domestic and foreign banks

KEYWORDS

image, consumer product knowledge, satisfaction, loyalty

 

Cite this paper

M. Chabachib, Aji Yudha, Udin Udin. (2020) The Role of Firm Size on Bank Liquidity and Performance: A Comparative Study of Domestic and Foreign Banks in Indonesia. International Journal of Economics and Management Systems, 5, 101-110

 

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