The Effect of Capital Adequacy Ratio, Third Party Funds, Loan to Deposit Ratio, Bank Size on Profitability in Banking Companies on IDX – AJHSSR

The Effect of Capital Adequacy Ratio, Third Party Funds, Loan to Deposit Ratio, Bank Size on Profitability in Banking Companies on IDX

The Effect of Capital Adequacy Ratio, Third Party Funds, Loan to Deposit Ratio, Bank Size on Profitability in Banking Companies on IDX

ABSTRACT : This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Third Party Fund, Loanto Deposit Ratio (LDR), and Bank Size to Profitability in banking companies listed in Indonesia StockExchange by using annual financial reports published in 2016-2018. The population in this study are 44 bankswith 18 obtained as samples using purposive sampling method. The results of this study indicate that the CapitalAdequacy Ratio, Third Party Fund, Bank Size have a positive and significant effect on profitability. Meanwhile,Loan to Deposit Ratio has a positive and insignificant effect on the Profitability of Banking Companies in theIndonesia Stock Exchange during the 2016–2018 period.

Keywords: Capital Adequacy Ratio, Third Party Fund, Loan to Deposit Ratio, Bank Size, Profitability