The Effect of Diversification of Income towards the Performance of Banks Listed in the Indonesia Stock Exchange

Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia Pub Date : 1900-01-01 DOI:10.4108/eai.3-8-2021.2315087

C. Martiningtiyas, Susy Muchtar, Pratiwi Ristiqomah, M. Rahman

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Abstract

This study aims to analyze the effect of income diversification on bank performance. The independent variable in this study is income diversification, with the control variables are CAR, LDR, NPL and the dependent variable is bank performance (SHROA and SHROE). The sample used in this study is a company engaged in banking companies listed on the Indonesia Stock Exchange (IDX) for the period 2015-2019. The number of samples used in this study amounted to 30 banking companies using purposive sampling. The results of the study show that the income diversification and NPL variables have a significant negative effect on bank performance (SHROA and SHROE). The LDR variable has a significant positive effect on bank performance (SHROA and SHROE). While CAR and Bank Size variables have no significant effect on bank performance. Managerial Implications: Banking companies are expected to minimize the use of income diversification to reduce the level of risk, increase the level of credit distribution and monitor credit disbursement so as not to cause credit failures.

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收入多元化对印尼证券交易所上市银行业绩的影响

本研究旨在分析收入多元化对银行绩效的影响。本研究的自变量为收入多元化，控制变量为CAR、LDR、NPL，因变量为银行绩效(SHROA和SHROE)。本研究使用的样本是一家从事2015-2019年在印度尼西亚证券交易所(IDX)上市的银行公司的公司。本研究使用的样本数量为30家银行公司，采用有目的抽样。研究结果表明，收入多元化和不良贷款变量对银行绩效(SHROA和SHROE)有显著的负向影响。LDR变量对银行绩效(SHROA和SHROE)有显著的正向影响。而CAR和银行规模变量对银行绩效的影响不显著。管理启示:银行公司应尽量减少收入多样化的使用，以降低风险水平，增加信贷分配水平，并监控信贷支出，以免造成信贷失败。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Proceedings of the First Lekantara Annual Conference on Public Administration, Literature, Social Sciences, Humanities, and Education, LePALISSHE 2021, August 3, 2021, Malang, Indonesia

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