| Issue |
SHS Web Conf.
Volume 149, 2022
International Conference on Social Science 2022 “Integrating Social Science Innovations on Post Pandemic Through Society 5.0” (ICSS 2022)
|
|
|---|---|---|
| Article Number | 03018 | |
| Number of page(s) | 5 | |
| Section | Social Science | |
| DOI | https://doi.org/10.1051/shsconf/202214903018 | |
| Published online | 18 November 2022 | |
Investigating Bank Capital on Firm Rating Analysis
1 Faculty of Economics and Business, Universitas Negeri Manado
2 Faculty of Economics and Business, Universitas Negeri Manado
3 Faculty of Economics and Business, Universitas Negeri Manado
* Corresponding author: vica.kaparang@unima.ac.id
This paper examined the correlation between firm ratings of banks and financial risks assessment of PEFINDO using profitability, asset quality, and liquidity as independent variables. This paper also investigated the impact of bank capital as controlling variable on bank ratings. The data which have been observed are financial reports from publicly-held banks in Indonesia and firm rating analysis released by PEFINDO during 2017-2021 consecutively, then was analyzed with regression model. This paper finds that profitability, asset quality and liquidity have no correlation with bank ratings without the existence of bank capital. As bank capital are taken into account, the correlation analysis had a significant difference and bank capital becomes determining factor in bank rating analysis.
Key words: Firm Rating / Bank Capital / Profitability / Asset Quality / Liquidity
© The Authors, published by EDP Sciences, 2022
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