Determinants of non-performing financing in multi-finance enterprises in Indonesia
Endang Saefudin Mubarok, Imanuddin, Wiwin
This study aims to examine the impact of inflation, the BI rate, the exchange rate, loans to asset ratio, and capital towards non performing financing within Indonesian multi-finance enterprises. The sample involved in the study included finance companies listed on the Indonesia Stock Exchange. The analysis model chosen is multiple regression using panel data. The observed data are repeated data on the same research unit from time to time. The total number of samples was 42 units and the observation period was 2011-2017. The results of this study indicate that three factors, namely the IDR exchange rate, BI rate, and loan to asset ratio (LAR), have a positive and significant effect on non performing financing. Meanwhile, both inflation and capital have a negative and significant effect on non performing financing. Simultaneously the contribution of these five factors to the non performing financing is 34.75 percent.