The Analysis of The Effect of NPL on ROA in The Banking Companies Listed on The Indonesia Stock Exchange
Abstract
This research aims to analyze the effects of Return on Equity (ROE), Capital Adequacy Ratio (CAR), and Non Performing Loan (NPL) on Return on Asset (ROA) of the banking companies listed on the Indonesia Stock Exchange by using multiple regression model. This study used Balance Sheet and Ratio Report in the period of 2009. Result of first hypothesis indicates that ROE affects ROA with the t-test value 5.711 and a 0,000. Result of second hypothesis indicates that CAR has no effect on ROA with the t-test value 0.975 and a 0.338. Results of third hypothesis indicates that NPL has no effect on ROA with the t-test value -1.642 and a 0,111. Result of the R test is 0.795 and the R square is 0.632.