Comparison of capital structure, risk, and profitability between Islamic and conventional banks in Indonesia

Ida Ayu Fatmayuni; Arowadi  Lubis; Hikmah Endraswati

doi:10.55942/pssj.v5i10.588

Authors

Ida Ayu Fatmayuni Universitas Slamet Riyadi Surakarta https://orcid.org/0009-0007-6408-3158
Arowadi Lubis Universitas Slamet Riyadi Surakarta https://orcid.org/0009-0006-8310-5220
Hikmah Endraswati Universitas Islam Negeri Sunan Kalijaga

DOI:

https://doi.org/10.55942/pssj.v5i10.588

Keywords:

capital structure, conventional banks, equity proportion, islamic banks, profitability, risk

Abstract

This study aims to compare Islamic and Conventional Banks in Indonesia in terms of Capital Structure, Profitability, and Risk handling. Data for the analysis were taken from the quarterly financial reports of nine Islamic and Conventional Banks for the 2013Q1 – 2020Q3 period. Binary logistic regression was employed as an analysis tool using SPSS 19 software. The results show that Islamic and Conventional Banks are significantly different in terms of capital structure, profitability, and risk handling. Conventional banks have better capital structures and profitability. Islamic Banks, on the other hand, have better risk management.

Author Biographies

Ida Ayu Fatmayuni, Universitas Slamet Riyadi Surakarta

Ida Ayu Fatmayuni is affiliated with Universitas Slamet Riyadi Surakarta

Arowadi Lubis, Universitas Slamet Riyadi Surakarta

Arowadi Lubis is affiliated with Universitas Slamet Riyadi Surakarta

Hikmah Endraswati, Universitas Islam Negeri Sunan Kalijaga

Hikmah Endraswati is affiliated with UIN Sunan Kalijaga Yogyakarta

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