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

Andi Ruslan, Cepi Pahlevi, Syamsu Alam, Mursalim Nohong

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.

Keywords


Bank Size, Efficiency, Profitability

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DOI: http://dx.doi.org/10.26487/hebr.v3i1.1846

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Copyright (c) 2019 Andi Ruslan, Cepi Pahlevi, Syamsu Alam, Mursalim Nohong

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Hasanuddin Economics and Business Review (ISSN Print: 2549-3221 | ISSN Online: 2549-323X ) is licensed under a Creative Commons Attribution 4.0 International License. Preserved in LOCKSS, based at Stanford University Libraries, United Kingdom, through PKP Private LOCKSS Network program.

 

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