The Effect Of Credit Risk, Operational Efficiency, And Capital Structure On Profitability (Empirical Study On The Banking Industry Listed On The Idx)

Abstract

This study aims to determine the effect of credit risk, operational efficiency, and capital structure on profitability. This research was
conducted using a quantitative approach to banks listed on the Indonesia Stock Exchange from 2016-2020. The purposive sampling
method was used in this study to take samples, where the number of observations used was 210, namely 42 banks with a coverage of
5 years. This study was analyzed using multiple regression models and processed with Stata 15 software. The results showed that credit
risk had a negative effect on profitability. In addition to credit risk, operational efficiency also has a negative impact on profitability.
Meanwhile, the capital structure does not have a positive effect on profitability.