Abstract

This study aims to empirically examine the effect of Leverage, Profitability, and Liquidity on the Earning Response Coefficient (ERC) in Islamic banking companies. Data collection techniques using documentation and data analysis techniques using purposive sampling. Earning Response Coefficient (ERC) is a type of dependent variable that can be useful in research. However, the variables that are independent in this research are Leverage, Profitability, and Liquidity. The method used in this research is multiple linear regression analysis. This study uses a tool that is IBM SPSS Statistics 20 software program. The results of this study can be interpreted that simultaneously there is a positive and significant direct effect, namely Leverage, Profitability, and Liquidity on the Earning Response Coefficient. While partially Leverage has a significant negative effect on the Earning Response Coefficient, profitability has a significant positive effect on the Earning Response Coefficient, liquidity has no significant effect on the Earning Response Coefficient.
 Keywords: Leverage, Profitability, Liquidity, Earning Response Coefficient (ERC), Bank Syariah Indonesia.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.