According to Indonesian Banking Statistics 2015, there was an increasing source of funds as deposit and distribution of funds as credit in Banks in Indonesia from year 2010 until year 2015. But on the other side, the banking financial performance as measure by Return On Asset (ROA)
tend to decrease year to year. In 2014, the banking financial performance 2,85% (decrease 7.4% from 2013) and it continue to decrease 19.2% in 2015. So this study seeks to investigate what factors give an impact to the ROA. The factors are CAR, NPL and Institutional Ownership. The sample of
this study is 30 Banks that quoted from Indonesian Stock Exchange for period of 2010–2015 by applying panel data regression analysis. After done, Common Effect Model is chosen as the most suitable for our data. As a result, CAR and NPL each partially has a statistically significant effect
on ROA, otherwise the institutional ownership has an effect on ROA but not statistically significant.
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Document Type: Research Article
Management Department, Faculty of Economics and Business, University of Sumatera Utara (USU), Indonesia
Accounting Department, Faculty of Economics and Business, University of Sumatera Utara (USU), Indonesia
Publication date: July 1, 2018
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