Effect of risk profile, good corporate governance, earnings, and capital on growth income in banking services listed in Indonesia stock exchange

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Rida Prihatni

2019 Academy of Accounting and Financial Studies Journal Vol. 23 Issue 5 Article Cited by 0 SDG 8 Quartile

Abstract

This study aims to provide evidence of the influence, or lack thereof Risk Profile, Good Corporate Governance (GCG), Earnings, and Capital, or RGEC on profit growth. RGEC is a bank health assessment method. Non-performing loans (NPL) are used as an indicator of the Risk Profile variable, the self-assessment of each bank is used as an indicator of GCG, Return on Assets (ROA) is used as an indicator of Earnings, and Capital Adequacy Ratio (CAR) is used as an indicator of Capital. The population of this research is banking companies listed in Indonesia Stock Exchange (IDX) in the period 2013 to 2015. The research sample consists of 14 banks that have been selected according to several sample criteria. A purposive sampling method is employed and the analysis of research data is carried out using a multiple linear regression test. The results show that ROA has an influence on profit growth, whereas there is no evidence of the influence of NPL, bank self-assessments and CAR on profit growth. © 2019, Allied Business Academies.

Affiliations

State University of Jakarta, Indonesia

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