Hasanuddin Economics and Business Review
Vol 3, No 1 (2019): HEBR Vol 3 No 1 June 2019

THE ROLE OF EFFICIENCY MEDIATION IN THE EFFECT OF BANKS SIZE ON BANK PROFITABILITY IN INDONESIA

Andi Ruslan (Islamic Banking Study Program/ Islamic Faculty of Economics and Business Institute for Islam Studies (IAIN) Bone)
Cepi Pahlevi (Economics and Business Faculty Hasanuddin University)
Syamsu Alam (Economics and Business Faculty Hasanuddin University)
Mursalim Nohong (Economics and Business Faculty Hasanuddin University)



Article Info

Publish Date
23 Jun 2019

Abstract

The purpose of this study was to analyze the mediating role of bank efficiency in the effect of bank size on bank profitability. The research sample is 25 banks that have a minimum core capital of Rp. 5,000,000,000,000 and publish financial statements in full during 2010-2017. The data analysis technique in this study is path analysis (path analysis) with the help of AMOS software (Analysis of Moment Structure). The results of the study found that; 1) bank size has a positive and significant effect on bank efficiency; 2) bank size has a positive and not significant effect on bank profitability; 3) bank efficiency has a positive and significant effect on bank profitability. 4) bank efficiency is able to mediate the effect of bank size on bank profitability.

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Journal Info

Abbrev

hebr

Publisher

Subject

Economics, Econometrics & Finance

Description

Hasanuddin Economics and Business Review (HEBR) is an international triannual open access and peer reviewed journal of economics and business. HEBR is published by Faculty of Economics and Business Hasanuddin University. The journal is published in both print and online ...