THE ANALYSIS OF IMPACT OF CAPITAL ADEQUACY, RENTABILITY, AND LIQUIDITY TOWARD COMPANIES PROFIT GROWTH: Case study on listed banking companies in Indonesian Stock Exchange (IDX)

Abstract

This study aimed to analyze the impact of independent variables on the dependent variable to test the hypothesis. Hypotheses are made relating to the significant effect or not, increase or decrease, or no effect at all between capital adequacy, profitability and liquidity as measured by CAR, ROA and LDR against profit growth either partially or simultaneously. The data used in this study are the data taken from the Indonesia Stock Exchange and the Indonesian Capital Market Directory (ICMD). The data source using the financial statements in the period 2008-2010. The method used in this research is quantitative method. The results showed a partial good with a mean (average) or the median (middle value) independent variable has no significant effect on earnings growth. However, simultaneously with a mean (average value) three independent variables have no significant effect on earnings growth. While the median (middle value) of the three independent variables have a significant influence on profit growth.