THE FACTORS INFLUENCING PROFITABILITY WITH GOOD CORPORATE GOVERNANCE AS A VARIABLE MODERATE AT REGIONAL DEVELOPMENT BANKS

Febri Anhar; Abdurrahman Abdurrahman; Eka Bertuah; Sapto Jumono

doi:10.51742/akuntansi.v5i2.1393

Febri Anhar Universitas Esa Unggul
Abdurrahman Abdurrahman Universitas Esa Unggul
Eka Bertuah Universitas Esa Unggul
Sapto Jumono Universitas Esa Unggul

DOI: https://doi.org/10.51742/akuntansi.v5i2.1393

Keywords: Credit Risk, Liquidity, Capital Adequacy Ratio, Good Corporate Governance, Profitability, Regional Development Banks

Abstract

This research aims to determine the role of credit risk, liquidity and capital adequacy ratio on profitability moderated by Good Corporate Governance at Regional Development Banks in Indonesia for 2017 - 2022. Data obtained from the annual financial reports of Regional Development Banks and using 23 Regional Development Banks with a total sample 184 banks. Data collection used the purposive sampling method, and the data analysis used was Moderated Regression Analysis (MRA). Data analysis management uses Eviews 13.0 software. This test uses hypothesis testing in the form of the F and t-tests. Apart from that, classical assumption tests are also used in the form of normality tests, multicollinearity tests, autocorrelation tests and heteroscedasticity tests. The results of this research indicate that credit risk has a negative effect on profitability, liquidity and capital adequacy do not affect profitability and good corporate governance can strengthen the relationship between the influence of credit risk, liquidity and capital adequacy on profitability.