JIFTECH: Journal Of Islamic Financial Technology
Vol 1, No 1 (2022)

Causality Analysis and Cointegration Between Mudharabah Financing and Return On Assets In Sharia Business Units Year 2016-2019

Delima Sari Lubis (Institut Agama Islam Negeri Padangsidimpuan)
Zulaikha Matondang (Institut Agama Islam Negeri Padangsidimpuan)
Hera Rusliani Siregar (Institut Agama Islam Negeri Padangsidimpuan)



Article Info

Publish Date
09 Feb 2022

Abstract

In increasing profitability, Islamic banks can take advantage of productive assets in the form of financing. One of them is mudharabah financing, the higher the mudharabah financing , the higher the level of profitability of Islamic banks. However, based on data on mudharabah financing with return on assets obtained from the financial services authority, the amount of mudharabah financing always increases every year during the 2016-2019 period. Meanwhile, the percentage of return on assets decreased during that period. The purpose of this research is to find out whether the two variables influence each other or not . The research method is correlation analysis with data analysis techniques used, namely descriptive, normality test, stationary test, lag test, Granger causality test, cointegration test, vector autoregretion (VAR) model test, Impulse Response Function (IRF) test, and Variance Decomposition test. (VD) which is processed using Eviews 10. The results obtained from the causality test are that there is a one-way relationship between Mudharabah Financing and Return On Assets with a probability value of 0.0326 0.05 , but there is no causal relationship between Return On Assets and mudharabah financing.

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Journal Info

Abbrev

jiftech

Publisher

Subject

Economics, Econometrics & Finance

Description

JIFTECH: Journal Of Islamic Financial Technology is a peer-reviewed journal, a publication on Islamic Financial Technology from research and original writings on Islamic Financial Technology. The journal aims to provide a platform for scientific understanding in the field of Islamic financial ...