Similarity of The Impact of Debt Financing and Equity Financing on Profit Expense Ratio of Islamic Banks in Indonesia

MARIAM, NENDEN SITI and Isnurhadi, Isnurhadi and Taufik, Taufik (2017) Similarity of The Impact of Debt Financing and Equity Financing on Profit Expense Ratio of Islamic Banks in Indonesia. Jurusan Manajemen FE Unsri.

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Abstract

The purpose of this study is to determine whether Equity Financing and Debt Financing partially and simultaneously have an impact on Profit Expense Ratio, also how the partial effect of each financing systems affect Profit Expense Ratio. This research is causal research, also called explanatory research is the investigation of (research into) cause-and-effect relationships. The number of taken samples is two, such as PT. Bank Muamalat Indonesia (BMI) and PT. Bank Syariah Mandiri (BSM). The data used in this research are secondary data from published financial statements of BMI and BSM. The data analysis technique used is linear regression. The results of data analysis in this research is partially contained direct or positive relationship between Debt Financing and Equity Financing on Profit Expense Ratio. While the effects of Debt Financing and Equity Financing as the independent variables (X) simultaneously affect Profit Expense Ratio as the dependent variable (Y) on Islamic banks, it means that Debt Financing and Equity Financing simultaneously have significant impacts on Profit Expense Ratio of Islamic banks. The obtained value of coefficient of determination (R2) is 0.516 or 51.6%. It means that the variation of these independent variables, namely Debt Financing and Debt Financing, contribute effects on Profit Expense Ratio of Islamic Banks. In accordance with the analysis result of this research, it can be seen that Equity Financing is dominant in affecting Profit Expense Ratio of Islamic Banks compared to Debt Financing. The researcher suggests management of Islamic banks to prioritize Equity Financing system, especially Musharaka, because the said financing system is the most appropriate with Islamic law to apply to muslims.

Item Type: Other
Subjects: H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance. Corporation finance
Divisions: 01-Faculty of Economics > 61102-Management (S2)
Depositing User: Ph.D Isnurhadi Isnurhadi
Date Deposited: 06 Apr 2023 12:55
Last Modified: 06 Apr 2023 12:55
URI: http://repository.unsri.ac.id/id/eprint/80172

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