Model Return on Equity in relation to Oil Price and Loan to Deposit Ratio

Authors

  • Josua Panatap Soehaditama Universitas Bhayangkara Jakarta Raya
  • Adler Haymans Manurung Universitas Bhayangkara Jakarta Raya
  • Nera Marinda Machdar Universitas Bhayangkara Jakarta Raya
  • Ningky Sasanti Munir Universitas Bhayangkara Jakarta Raya

DOI:

https://doi.org/10.55927/eajmr.v3i1.7939

Keywords:

Return on Equity, Oil Price, Loan to Deposit Ratio

Abstract

This research can present an in-depth understanding of how companies and financial institutions deal with market complexity, improve financial performance, and innovate in the face of challenges and opportunities that arise in the current economic context. Using quantitative research methods with statistical regression models as analysis so that it can be used to evaluate the quantitative relationship between LDR, oil prices, and ROE, with the number of respondents of all bank issuers listed on the Indonesia Stock Exchange and submitting complete financial statements. There is a positive and significant influence between the Bank's LDR variable and ROE, both a significant and positive influence between the Oil Price variable and ROE, simultaneously also have a positive and significant effect. This result, although positive, does not mean that there needs to be improvement in management in an effort to improve results for the company.

References

Alaigba, D., Afolabi, R. O., Seteyeobot, I., Onuh, C. Y., & Titus, Z. (2016). Oil Price Slump: Investigating the Market Dynamics of the Role of the Oil Titans and its Global Impact. Journal of Economics and Sustainable Development, 7, 36–40. https://api.semanticscholar.org/CorpusID:67809703

Alexeev, M. V, & Zakharov, N. (2021). Who Profits from Windfalls in Oil Tax Revenue? Inequality, Protests, and the Role of Corruption. Comparative Political Economy: Fiscal Policy EJournal. https://api.semanticscholar.org/CorpusID:237604422

Badruzaman, J., Fadilah, A. R., & Abdurrahman, F. (2022). Determining the Effect of Return on Equity (ROE) on Price EarningsRatio (PER) and Price to Book Value (PBV) in LQ45 companies,Indonesia. WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS. https://api.semanticscholar.org/CorpusID:252183517

Chuvakhina, L. G. (2019). The Role of the Monetary Policy of the US Federal Reserve in Regulating Global Oil Prices. Proceedings of the External Challenges and Risks for Russia in the Context of the World Community’s Transition to Polycentrism: Economics, Finance and Business (ICEFB 2019). https://api.semanticscholar.org/CorpusID:210129788

D.e, O., & Osaze, I. D. (2013). Oil Price Volatility and its Consequences on the Growth of the Nigerian Economy: An Examination (1970-2010). Asian Economic and Financial Review, 3, 683–702. https://api.semanticscholar.org/CorpusID:7827848

Fakhroni, I., & Futaqi, F. A. (2022). The Effect of Return on Equity, Earnings Per Share, and Price Earning Ratio on Stock Prices. Proceeding of Annual International Conference on Islamic Economics (AICIE). https://api.semanticscholar.org/CorpusID:258932834

Fatonah, S., Amini, S. N., & Dayono, B. T. (2022). PENGARUH DEBT TO ASSET RATIO (DAR) DAN DEBT TO EQUITY RATIO (DER) TERHADAP RETURN ON EQUITY (ROE) PADA PERUSAHAAN MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA. National Conference on Applied Business, Education, & Technology (NCABET). https://api.semanticscholar.org/CorpusID:253604007

Heliani, Mareta, F., Ulhaq, A., Resfitasari, E., Febriani, I., & Elisah, S. (2022). Effect of Debt to Equity Ratio, Current Ratio, Total Assets Turnover, Earning Per Share, Price Earning-Ratio, Sales Growth, and Net Profit Margin on Return on Equity. Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021). https://api.semanticscholar.org/CorpusID:246956735

heri Winarno, S. (2017). Analisis Dampak Kebijakan Loan To Deposit Ratio (Ldr) Terhadap Perubahan Tingkat Pengembalian Modal (Roe). https://api.semanticscholar.org/CorpusID:157350261

Islamiyah, D., & Sukaris, S. (2023). The Influence of Loan yo Deposite Ratio, Operational Costs and Operational Revenue, Non Performing Loans on Profitability In Banking Companies Listed on The Indonesia Stock Exchange. Journal Universitas Muhammadiyah Gresik Engineering, Social Science, and Health International Conference (UMGESHIC). https://api.semanticscholar.org/CorpusID:257650116

Jassim, R. Y., & Bekheet, H. N. (2022). The Effectiveness of Monetary Policy in Neutralizing Oil Price Fluctuations on the Gross Domestic Product in Iraq for the Period (1990-2019). Journal of Economics and Administrative Sciences. https://api.semanticscholar.org/CorpusID:250436381

Josua Panatap Soehaditama. (2023). Sustainability in Bank: Deposits, Investment and Interest Rate. Formosa Journal of Sustainable Research, 2(5), 1069–1078. https://doi.org/10.55927/fjsr.v2i5.3912

Liu, Y. (2019). The Implications of the Fluctuating Oil Prices on the Corporate Sustainability of Malaysian Small and Medium Enterprises (SMEs) in the Oil and Gas (O&G) Industry. https://api.semanticscholar.org/CorpusID:237488008

Nino, V. Di, Álvarez, I. A., & Venditti, F. (2020). Strategic Interactions and Price Dynamics in the Global Oil Market. ECB: Working Paper Series (Topic). https://api.semanticscholar.org/CorpusID:211162401

Park, W. A., & Min, B. (2021). Impacts of Liquidity Preference on Loan-to-Deposit Ratio and Regional Economic Growth: A Post-Keynesian View. The Korean Economic Review, 37, 37–63. https://api.semanticscholar.org/CorpusID:234963987

Qomariyah, V. A. (2023). Analisis Pengaruh Dana Pihak Ketiga, Inflasi, Non Performing Loan Dan Loan To Deposit Ratio Terhadapkredit Modal Kerja Pada Bank Umum Di Jawa Timur. Eqien - Jurnal Ekonomi Dan Bisnis. https://api.semanticscholar.org/CorpusID:256916361

Stevens, A. (2015). Optimal monetary policy response to endogenous oil price fluctuations. https://api.semanticscholar.org/CorpusID:55073247

Wang, M. (2022). Research on liquidity risk of commercial bank – from the view of comparison of Chinese and American commercial banks. ITM Web of Conferences. https://api.semanticscholar.org/CorpusID:248927261

Wicaksana, A. A. F., & Sukmana, R. (2019). NFLASI DI INDONESIA PADA PERIODE 2011-2015: ANALISIS SERTIFIKAT BANK INDONESIA, SERTIFIKAT BANK INDONESIA SYARIAH, PASAR UANG ANTAR BANK, PASAR UANG ANTAR BANK SYARIAH, FINANCE TO DEPOSIT RATIO DAN LOAN TO DEPOSIT RATIO. Jurnal Ekonomi Syariah Teori Dan Terapan. https://api.semanticscholar.org/CorpusID:226938293

Downloads

Published

2024-02-02

How to Cite

Soehaditama, J. P., Manurung, A. H., Machdar, N. M., & Munir, N. S. (2024). Model Return on Equity in relation to Oil Price and Loan to Deposit Ratio. East Asian Journal of Multidisciplinary Research, 3(1), 73–80. https://doi.org/10.55927/eajmr.v3i1.7939

Most read articles by the same author(s)