Overview

Original Research

RETURN ON EQUITY (ROE) AS MEDIATION OF BANK'S CAPITAL ADEQUATION RATIO (CAR)

HERI SASONO 1, ACHMAD SYUKRI 2, PAIDI WS 3, IRWAN MORIDU 4, CHAMDUN MAHMUDI 5, and IWAN HARSONO 6.

Vol 19, No 03 ( 2024 )   |  DOI: 10.5281/zenodo.10848260   |   Author Affiliation: Postgraduate Program, STIE Dharma Bumiputera, Jakarta 1,2; Faculty of Economics and Business, Tanri Abeng University, Jakarta 3; Faculty of Economics and Business, Muhammadiyah University, Luwuk 4; Accounting Study Program, STIE Dharma Bumiputera, Jakarta 5; Faculty of Economics and Business, Mataram University, Mataram 6.   |   Licensing: CC 4.0   |   Pg no: 390-399   |   Published on: 14-03-2024

Abstract

Banks need to maintain their performance and the level of Capital Adequasi Ratio (CAR). This study wants to see the variables that affect the Capital Adequasi Ratio (CAR) and see ROE as a variable that mediates the Capital Adequasi Ratio (CAR) at Bank Rakyat Indonesia (BRI). The research method used multiple regression analysis, t-test, Anova test and Coefficient of Determination and the research period for 14 years from 2009 to 2022, by using SPSS Software version 26. The conclusion of the study, only the BOPO variable has a significant effect on the Capital Adequasi Ratio (CAR) and the ROE variable as a variable that can mediate the CAR variable at Bank Rakyat Indonesia (BRI).

Keywords

Capital Adequasi Ratio, Bank Financial Ratio.