PENGARUH PROFITABILITAS, LIKUIDITAS, KECUKUPAN MODAL DAN ASET PRODUKTIF TERHADAP KINERJA KEUANGAN PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI PERIODE 2016-2020

Abstract

Financial institutions are a very crucial asset in a country’s economic development. Likewise in Indonesia, the economic development cannot be separated from its financial institutions roles. Bank in running its activities collects public funds and redistributes in the form of investments alternatives. As its function as a funds collector, Bank is frequently known as a trusted institution. Therefore, this research aimed to find out, analyze, and examine the effect of profitability, liquidity, capital adequacy, and productive asset on finance companies’ financial performance which were listed on Indonesia Stock Exchange during 2016-2020. The research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on certain characteristics or criteria. From 20 finance companies, there were 9 companies as the research sample. Furthermore, the data analysis technique used multiple linear regression, classical asumption test, proper model test, and hypothesis test. According to the hypothesis test, it concluded that profitability had a positive and significant effect on financial performance. On the other hand, liquidity had a negative and insignificant effect on financial performance. Likewise, capital adequacy had a negative and insignificant effect on financial performance. Similarly, poductive asset had a negative and insignificant effect on financial performance.