VALUATION OF EFFICIENCY VALUE AND ITS IMPLICATIONS ON RETURN ON ASSETS OF SHARIA COMMERCIAL BANKS IN INDONESIA
The purpose of this research is to determine and analyze the value of efficiency and its implications on the return on assets of Islamic Commercial Banks in Indonesia. This research method uses quantitative data from Islamic banking financial reports that have been audited on the IDX during the 2015-2021 period. The data analysis technique used is multiple linear regression analysis of panel data using Eviews 12 software. The regression model estimation technique uses panel data through the CEM, FEM, and REM approaches. FEM specification model are the best models. Findings: Partial results show the first equation; BOPO has no significant negative effect, NPF has a significant positive effect. FDR, ICG, and Inflation have a significant negative effect, CAR and OC have a significant positive effect on efficiency values. Taken together CAR, BOPO, NPF, FDR, ICG, OC, and Inflation variables have a significant positive effect on Efficiency Values. Adjusted R2 on first equations 77.7%. The second equations; CAR and NPF have no significant positive effect, BOPO and ICG have a significant positive effect, FDR has no significant negative effect, OC, Inflation, and NEF have a significant negative effect on ROA. CAR, BOPO, NPF, FDR, ICG, OC, and Inflation variables have a significant positive effect on ROA. Adjusted R-squared is 92.3%, while the remaining 7.7% is influenced by other variables outside this research.
Return on Assets, Efficiency Value, Sharia Commercial Banks.