Pengaruh Konjunkturforschungsstelle (KOF) Globalisation Index, Bank Specific Characteristic serta Makro Ekonomi terhadap Kinerja Perusahaan Perbankan di Indonesia

Abstract

The research aims to analyze the effects of globalization, bank-specific characteristics, and macroeconomics on the work performance of banking companies in Indonesia assessed based on ROE (Return on Equity). The variables of globalization dimension are KOF Economic Globalisation Index, KOF Social Globalisation Index, and KOF Political Globalisation Index. The variables of bank sector dimension are bank size and EQASS (equity to asset ratio). The variables of macroeconomics dimension are inflation rate, GDP (Gross Domestic Product) per capita growth rate, and FDI (Foreign Direct Investment) Inflows part of GDP. Secondary data are used in this research obtained from the annual reports which have been published by the banking companies from the year 20 I 0 until 2019. The panel data processing model employed in this research is REM (Random Effect Model). The result indicates that KOF Economic Globalisation Index, KOF Political Globalisation Index, bank size, inflation rate, and GDP (Gross Domestic Product) per capita growth rate have positive and significant effects on ROE (Return on Equity). Meanwhile, KOF Soci.al Globalisation Index and FD/ (Foreign Direct Investment) Inflows part of GDP have negative and significant effects on ROE (Return on Equity). The variable of EQASS (Equity-to­Asset Ratio), in fact, has a negative and insignificant effect on ROE (Return on Equity).