Testing the Efficiency of Capital Structure and Assets Structure in Bank
Ahmad Roziq
*
Department of Accounting, Faculty of Economics and Business, University of Jember, P. O. Box 159-68121 Jember, East Java, Indonesia.
Ayang Marizca
Department of Accounting, Faculty of Economics and Business, University of Jember, P. O. Box 159-68121 Jember, East Java, Indonesia.
Alwan Sri Kustono
Department of Accounting, Faculty of Economics and Business, University of Jember, P. O. Box 159-68121 Jember, East Java, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This study aims to examine and analyze the effect of capital and asset structure on the risk of financing and profitability of Islamic banks in Indonesia. This type of research is explanatory research, namely research that explains the relationship of the influence of the independent variable on the influence of the dependent variable through a hypothesis test using path analysis. The data used in this study is secondary data on capital structure, asset structure, risk, and profitability in Islamic banks for the 2014-2018 period. The data collection method used in this research is the documentation method. The results of the study conclude that capital structure has a significant effect on risk but does not have a significant effect on profitability, asset structure has no significant effect on risk and profitability and risk has a significant effect on profitability. The results of analysis and discussion can be advised the management of Islamic banks to improve the performance of Islamic banks, so the management of Islamic banks must be able to establish an efficient capital structure, namely by using temporary syirkah funds that use an efficient profit-sharing system and loans with the wadiah system.
Keywords: Risk, profitability, Islamic, fund, financing.