Factors affecting return on deposit (ROD) of sharia banks in Indonesia
Abstract
This study examines the effect of Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), board of directors’ size (BOARD), sharia supervisory board (DPS), bank size (SIZE), and interest rate (INT) and sharia bank ownership status (DFOR) to Return on Deposit (ROD). The sample used in this research is 11 sharia banks operating in Indonesia. By using multiple regression analysis technique, it was found that CAR and SIZE have a significant negative effect on ROD) of sharia banks in Indonesia. While the FDR, BOARD and INT have a significant positive effect on ROD of sharia banks in Indonesia. Meanwhile, DPS and DFOR have no significant effect on ROD of sharia bank in Indonesia.
Keyword : sharia bank, Return on Deposit (ROD), Sharia Supervisory Board, foreign ownership, Capital Adequacy Ratio (CAR)
How to Cite
Wahyudi, S., Nofendi, D., Robiyanto, R., & Hersugondo, H. (2018). Factors affecting return on deposit (ROD) of sharia banks in Indonesia. Business: Theory and Practice, 19, 166-176. https://doi.org/10.3846/btp.2018.17
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Ghaffar A (2014) Corporate governance and profitability of Islamic banks operating in Pakistan. Interdisciplinary Journal of Contemporary Research in Business 6 (2): 320-336.
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Hamza H (2016) Does investment deposit return in Islamic banks reflect PLS principle? Borsa Istanbul Review 16 (1): 32-42. https://doi.org/10.1016/j.bir.2015.12.001
Haron R, Ibrahim K, Nor FM, Ibrahim I (2013) Dynamic adjustment towards target capital structure: Thailand Evidence. Jurnal Pengurusan 39: 73-82.
Hassan MK, Aliyu S (2018) A contemporary survey of Islamic banking literature. Journal of Financial Stability 34: 12-43. https://doi.org/10.1016/j.jfs.2017.11.006
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Jankelová N, Jankurová A, Beňová M, Skorková Z (2018) Security of the business organizations as a result of the economic crisis. Entrepreneurship and Sustainability Issues 5 (3): 659-671. https://doi.org/10.9770/jesi.2018.5.3(18)
Khediri KB, Charfeddine L, Youssef SB (2015) Islamic versus conventional banks in the GCC countries: a comparative study using classification techniques. Research in International Business and Finance 33: 75-98. https://doi.org/10.1016/j.ribaf.2014.07.002
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Majid MSA, Musnadi S, Putra IY (2014) A comparative analysis of the quality of Islamic and conventional banks’ asset management in Indonesia. Gadjah Mada International Journal of Business 16 (2).
Masood O, Ashraf M (2012) Bank-Specific and macroeconomic profitability determinants of Islamic banks: the case of different countries. Qualitative Research in Financial Markets 4: 255-268. https://doi.org/10.1108/17554171211252565
Mollah S, Zaman M (2015) Shari’a supervision, corporate governance and performance: conventional vs. Islamic banks. Journal of Banking and Finance58 (C): 418-435. https://doi.org/10.1016/j.jbankfin.2015.04.030
Muhammad. (2005). Manajemen Bank Syariah. Yogyakarta: UUP AMP YKPN.Rahim RA (2017) Efficiency and competition in the Malaysian banking market: foreign versus domestic banks. Gadjah Mada International Journal of Business 19 (2): 193-221. https://doi.org/10.22146/gamaijb.6106
Rivai V, Arifin A (2010) Islamic Banking Sebuah Teori, Konsep, dan Aplikasi. Jakarta: Bumi Aksara.
Robiyanto R (2018a) The effect of gold price changes, USD/IDR exchange rate changes and Bank Indonesia (BI) rate on Jakarta Composite Index (JCI)’s return and Jakarta Islamic Index (JII)’s return. Jurnal Manajemen dan Kewirausahaan 20 (1): 45-52.
Robiyanto R (2018b) Testing of the gold’s role as a safe haven and hedge for sharia stocks in Indonesia. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah 10 (2): 255-266.
Robiyanto R, Puryandani S (2015) The Javanese lunar calendar’s effect on Indonesian stock returns. Gadjah Mada Inter-national Journal of Business 17 (2): 125-137. https://doi.org/10.22146/gamaijb.6906
Robiyanto R, Wahyudi S, Pangestuti IRD (2017) The volatility–variability hypotheses testing and hedging effectiveness of precious metals for the Indonesian and Malaysian capital markets. Gadjah Mada International Journal of Business 19 (2): 167-192. https://doi.org/10.22146/gamaijb.26260
Rosly SA, Bakar MAA (2003) Performance of Islamic and Mains-tream Banks in Malaysia. International Journal of Social Economics 20 (12).
Wirdyaningsih, Perwataatmadja K, Gemala D, Barlinti YS (2005) Bank dan Asuransi Islam di Indonesia. Jakarta, Indonesia: Kencana Predana Media.
Zouari SBS, Taktak NB (2014) Ownership structure and finan-cial performance in Islamic Banks. International Journal of Islamic and Middle Eastern Finance and Management 7 (2): 146-160. https://doi.org/10.1108/IMEFM-01-2013-0002
Amelia E (2015) Financial ratio and its influence to profitability in Islamic banks. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah 7 (2): 229-240.
Anuar K, Mohamad S, Shah ME (2014) Are deposit and investment accounts in Islamic banks in Malaysia interest-free? Journal of King Abdulaziz University: Islamic Economics 27 (2).
Aysan AF, Mustafa D, Ozturk H, Turhan IM (2013) Are Islamic banks subject to depositor discipline? Working Paper.
Bashir AM (1999) Risk and profitability measures in islamic banks: the case of two Sudanese banks. Islamic Economic Studies6 (2).
Basri H, Siti-Nabiha AK, Majid MSA (2016) Accounting and accountability in religious organizations: an Islamic contem-porary scholars’ perspective. Gadjah Mada International Journal of Business 18 (2): 207-230. https://doi.org/10.22146/gamaijb.12574
Chong BS, Liu MH (2006) Islamic banking: interest-free or interest based? Pacific-Basin Finance Journal17 (1): 125-144. https://doi.org/10.1016/j.pacfin.2007.12.003
Diaw A, Mbow A (2011) A comparative study of the re-turns on Mudharabah deposit and on equity in Isla-mic banks. Humanomics 17 (4): 229-242. https://doi.org/10.1108/08288661111181288
Ernayani R, Oktiviana S, Robiyanto R (2017) The effect of return on investment, cash ratio, and debt to total assets towards dividend payout ratio (a study towards manufacturing companies listed in Indonesia stock exchange). Advanced Science Letters 23 (8): 7169-7199. https://doi.org/10.1166/asl.2017.9328
Ernayani R, Robiyanto R, Sudjinan S (2017) Factors influencing profit distribution management of sharia commercial banks in Indonesia. Journal of Economics, Business & Accountancy Ventura 20 (2).
Fahmy MS (2013) Pengaruh CAR, NPF, dan FDR terhadap Profitabilitas Bank Umum Syariah. UIN Sunan Kalijaga, Yogyakarta.
Ghaffar A (2014) Corporate governance and profitability of Islamic banks operating in Pakistan. Interdisciplinary Journal of Contemporary Research in Business 6 (2): 320-336.
Gozali I (2006) Pengaruh CAR, FDR, BOPO, dan NPL terhadap Profitabilitas Bank Syariah Mandiri. Universitas Islam Indonesia, Yogyakarta.
Ghozali, I. (2011). Aplikasi Analisis Multivariate Dengan Menggunakan Program IBM SPSS 19. Semarang: Badan Penerbit Undip.
Hamza H (2016) Does investment deposit return in Islamic banks reflect PLS principle? Borsa Istanbul Review 16 (1): 32-42. https://doi.org/10.1016/j.bir.2015.12.001
Haron R, Ibrahim K, Nor FM, Ibrahim I (2013) Dynamic adjustment towards target capital structure: Thailand Evidence. Jurnal Pengurusan 39: 73-82.
Hassan MK, Aliyu S (2018) A contemporary survey of Islamic banking literature. Journal of Financial Stability 34: 12-43. https://doi.org/10.1016/j.jfs.2017.11.006
Ismal R (2009) Model of Islamic monetary operation for liquidity management in Islamic banking: case of Indonesia 2000–2009. Gadjah Mada International Journal of Business 11 (2): 149-165.
Jankelová N, Jankurová A, Beňová M, Skorková Z (2018) Security of the business organizations as a result of the economic crisis. Entrepreneurship and Sustainability Issues 5 (3): 659-671. https://doi.org/10.9770/jesi.2018.5.3(18)
Khediri KB, Charfeddine L, Youssef SB (2015) Islamic versus conventional banks in the GCC countries: a comparative study using classification techniques. Research in International Business and Finance 33: 75-98. https://doi.org/10.1016/j.ribaf.2014.07.002
Kordík M, Kurilovská L (2017) Protection of the national financial system from the money laundering and terrorism financing. Entrepreneurship and Sustainability Issues 5 (2): 243-262. https://doi.org/10.9770/jesi.2017.5.2(7)
Majid MSA, Musnadi S, Putra IY (2014) A comparative analysis of the quality of Islamic and conventional banks’ asset management in Indonesia. Gadjah Mada International Journal of Business 16 (2).
Masood O, Ashraf M (2012) Bank-Specific and macroeconomic profitability determinants of Islamic banks: the case of different countries. Qualitative Research in Financial Markets 4: 255-268. https://doi.org/10.1108/17554171211252565
Mollah S, Zaman M (2015) Shari’a supervision, corporate governance and performance: conventional vs. Islamic banks. Journal of Banking and Finance58 (C): 418-435. https://doi.org/10.1016/j.jbankfin.2015.04.030
Muhammad. (2005). Manajemen Bank Syariah. Yogyakarta: UUP AMP YKPN.Rahim RA (2017) Efficiency and competition in the Malaysian banking market: foreign versus domestic banks. Gadjah Mada International Journal of Business 19 (2): 193-221. https://doi.org/10.22146/gamaijb.6106
Rivai V, Arifin A (2010) Islamic Banking Sebuah Teori, Konsep, dan Aplikasi. Jakarta: Bumi Aksara.
Robiyanto R (2018a) The effect of gold price changes, USD/IDR exchange rate changes and Bank Indonesia (BI) rate on Jakarta Composite Index (JCI)’s return and Jakarta Islamic Index (JII)’s return. Jurnal Manajemen dan Kewirausahaan 20 (1): 45-52.
Robiyanto R (2018b) Testing of the gold’s role as a safe haven and hedge for sharia stocks in Indonesia. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah 10 (2): 255-266.
Robiyanto R, Puryandani S (2015) The Javanese lunar calendar’s effect on Indonesian stock returns. Gadjah Mada Inter-national Journal of Business 17 (2): 125-137. https://doi.org/10.22146/gamaijb.6906
Robiyanto R, Wahyudi S, Pangestuti IRD (2017) The volatility–variability hypotheses testing and hedging effectiveness of precious metals for the Indonesian and Malaysian capital markets. Gadjah Mada International Journal of Business 19 (2): 167-192. https://doi.org/10.22146/gamaijb.26260
Rosly SA, Bakar MAA (2003) Performance of Islamic and Mains-tream Banks in Malaysia. International Journal of Social Economics 20 (12).
Wirdyaningsih, Perwataatmadja K, Gemala D, Barlinti YS (2005) Bank dan Asuransi Islam di Indonesia. Jakarta, Indonesia: Kencana Predana Media.
Zouari SBS, Taktak NB (2014) Ownership structure and finan-cial performance in Islamic Banks. International Journal of Islamic and Middle Eastern Finance and Management 7 (2): 146-160. https://doi.org/10.1108/IMEFM-01-2013-0002