IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-758-8_150.html

The Effect of Credit Risk, Liquidity Risk and Management Efficiency on Profitability Through Capital

In: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Author

Listed:
  • Andini Ismail

    (Universitas Hasanuddin)

  • Abd Rakhman Laba

    (Universitas Hasanuddin)

  • Andi Aswan

    (Universitas Hasanuddin)

Abstract

The purpose of this study was to determine the effect of credit risk, liquidity risk and management efficiency on profitability in banking in Indonesia and to determine whether capital can mediate the effect of credit risk, liquidity risk and management efficiency on profitability. This study uses secondary data, using a purposive sampling approach, the research population consists of banks in Indonesia. Obtained a sample size of 10 banks. The data was processed using SPSS Statistic 23 and SmartPLS 4. With SEM-PLS. The results showed that credit risk and liquidity risk had a negative and significant effect on capital, while management efficiency had a positive and insignificant effect on capital. Liquidity risk, management efficiency and capital had a negative and significant effect on profitability. While credit risk has a negative and insignificant effect on profitability, the results of indirect influence research show that credit risk and management efficiency have no significant effect on profitability through capital while liquidity risk has a significant effect on profitability through capital.

Suggested Citation

  • Andini Ismail & Abd Rakhman Laba & Andi Aswan, 2025. "The Effect of Credit Risk, Liquidity Risk and Management Efficiency on Profitability Through Capital," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Fitra Roman Cahaya & Phung Minh Tuan & Arifuddin Mannan & Anas Iswanto Anwar & Ria (ed.), Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), pages 1885-1899, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-758-8_150
    DOI: 10.2991/978-94-6463-758-8_150
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-758-8_150. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.