Profitability as a Mediator for the Effect of Capital Structure and Financing Risk on the Value of Islamic Commercial Banks in Indonesia
The existence of competition between banks in Indonesia makes all conventional and Islamic banking sectors must continue to strive to stabilize their finances and company values. The value of the company can be influenced by several factors, the value of the company itself can also be seen from the acquisition of the price of the shares owned. This study aims to test the effect or not of DER, DAR and NPF through mediation by profitability (return on assets). This study used an explanatory quantitative method with a sample of 6 Sharia Commercial Banks that met the research criteria. The data analysis used is SPSS 25 and SmartPLS 3. The result of this study is that the three variables DER, DAR and NPF did not have a significant effect on EVA and also ROA. ROA is also unable to mediate the influence of the three free variables on their bound variables.
Copyright (c) 2023 Author and Publisher
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Tazkia Islamic Finance and Business Review (TIFBR) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website), as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).