Cost Components as Predictors for the Profitability of sharia Banks : (Study on PT. Bank Syariah Mandiri and PT. Bank Syariah Mega Indonesia)
AbstractThe aim of this paper is to observe the cost structure in two prominent sharia banks in Indonesia. The Bank’s cost comprises of many cost components such as operational and non-operational costs. The study employed descriptive and inferential statistics to explain the data characteristics from those banks and tried to determine whether those costs influenced the profitability for the period of 2007-2008. The data were collected on the monthly basis for the period. The result of the study showed that there were some similarities and differences about the behavior of those banks within the study period. By using inferential statistics method, especially with the multiple regression analysis and hypothetical testing with F-test and t-test, the study demonstrated that the null-hypothesis was rejected which means that those costs simultaneously influenced on the bank’s profitability for the period.
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Bibliographic InfoPaper provided by Department of Management and Business, Padjadjaran University in its series Working Papers in Business, Management and Finance with number 201009.
Length: 16 pages
Date of creation: Sep 2010
Date of revision: Sep 2010
bank's costs; profitability; sharia banks;
Find related papers by JEL classification:
- G0 - Financial Economics - - General
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- Berger, Allen N, 1995. "The Profit-Structure Relationship in Banking--Tests of Market-Power and Efficient-Structure Hypotheses," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 404-31, May.
- Lloyd-Williams, D. M. & Molyneux, Phil & Thornton, John, 1994. "Market structure and performance in Spanish banking," Journal of Banking & Finance, Elsevier, vol. 18(3), pages 433-443, May.
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