The Determinants of Profitability in Village Credit Institution

Kumalasari, Putu Diah; Ernawatiningsih, Ni Putu Lisa

doi:10.32535/ijafap.v3i1.734

Cited by 2 publications

(2 citation statements)

References 2 publications

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“…A healthy company needs a balanced ratio of liquidity and profitability to maintain its viability for longer (Khan & Raj, 2020). Companies that have high capabilities will increase profits and show that the company is successful and healthy so that it can compete with other companies (Kumalasari & Ernawatiningsih, 2020). Profitability is a profit ratio measured by ROI (Return on Investment) or ROA (Return on Assets) which can significantly affect firm value.…”

Section: Literature Reviewmentioning

confidence: 99%

Profitability As Determining Factor to Anticipate Company Bankruptcy

Kadarningsih

Oktavia

Falah

et al. 2021

EEA

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The purpose of this study is to find out the effect of liquidity, leverage, operating capacity on financial distress through profitability as intervening variable. The population of this study is manufacturing companies listed on the IDX over the sampling. Based on the technique purposive sampling, obtained sample of 123 data from 54 manufacturing companies on IDX list from 2016 until 2018. This study uses path analysis using Warp PLS 5.0 software and Sobel test to find significancy of mediating variable. The results of this study indicate that profitability and leverage have a significant effect on the financial distress of manufacturing companies. Meanwhile, liquidity, and operating capacity have no effect on the financial distress of manufacturing companies. The intervening test confirmed that profitability have partial mediation role for relationship between liquidity, leverage, operating capacity with financial distress. Furthermore, the Sobel test also confirmed that profitability can significantly mediate the effect of liquidity, leverage and operating capacity on financial distress.

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Section: Literature Reviewmentioning

confidence: 99%

Profitability As Determining Factor to Anticipate Company Bankruptcy

Kadarningsih

Oktavia

Falah

et al. 2021

EEA

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“…Accordingly, research on LPDs' financial performance measured by profitability ratios has been widely carried out. The results show that the level of cash turnover, lending and debt management effectiveness have positive effects on LPD profitability (Sutika & Sujana, 2013); capital adequacy and liquidity ratios have positive effect on profitability, while non-performing loans have a negative effect on profitability (Krisnia Putri & Mustanda, 2019); furthermore, deposit growth positively affects profitability (Kumalasari et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Non-Financial Variables Determining Performance Village Credit Institutions

Wiagustini

Wistawan

2021

JMBK

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The Village Credit Institution (LPD) as a rural microfinance institution, its operational activities are limited within the village area, experienced a fairly rapid development from eight units in 1984, reaching 1443 units in 2019, but there were 177 units (12.35 percent) not operating. The measurement of the performance of LPD is determined from the indicators of the level of health which are more assessed from financial ratios. In this study, non-financial variables were examined as variables that affect financial performance. This study aims to analyze the non-financial variables that determine the performance of LPD, which in this study are market orientation, entrepreneurial orientation, financial literacy, financial inclusion. The research population is LPD operating in Bali Province in 2019 as many as 1256 units. determined using the Slovin formula with an allowance of 10 percent, which is 93 units, Sampling with stratified proportional random sampling based on the health level of LPD, The method of analysis is Partial Least Square (PLS), it was found that the increase in entrepreneurial orientation, market orientation, financial literacy and the financial inclusion of the Village Credit Institution management has an impact on improving its performance. The implications for the management of the Village Credit Institution in improving its performance can increase entrepreneurial orientation, market orientation. financial literacy, management inclusion.

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The Determinants of Profitability in Village Credit Institution

Cited by 2 publications

References 2 publications

Profitability As Determining Factor to Anticipate Company Bankruptcy

Profitability As Determining Factor to Anticipate Company Bankruptcy

Non-Financial Variables Determining Performance Village Credit Institutions

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