Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

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The Effect of Credit Risk, Liquidity Risk and Management Efficiency on Profitability Through Capital

Authors
Andini Ismail1, *, Abd Rakhman Laba1, Andi Aswan1
1Universitas Hasanuddin, Makassar, 90245, Indonesia
*Corresponding author. Email: ismaila23a@student.unhas.ac.id
Corresponding Author
Andini Ismail
Available Online 30 July 2025.
DOI
10.2991/978-94-6463-758-8_150How to use a DOI?
Keywords
Credit Risk; Liquidity Risk; Management Efficiency; Capital; profitability
Abstract

The purpose of this study was to determine the effect of credit risk, liquidity risk and management efficiency on profitability in banking in Indonesia and to determine whether capital can mediate the effect of credit risk, liquidity risk and management efficiency on profitability. This study uses secondary data, using a purposive sampling approach, the research population consists of banks in Indonesia. Obtained a sample size of 10 banks. The data was processed using SPSS Statistic 23 and SmartPLS 4. With SEM-PLS. The results showed that credit risk and liquidity risk had a negative and significant effect on capital, while management efficiency had a positive and insignificant effect on capital. Liquidity risk, management efficiency and capital had a negative and significant effect on profitability. While credit risk has a negative and insignificant effect on profitability, the results of indirect influence research show that credit risk and management efficiency have no significant effect on profitability through capital while liquidity risk has a significant effect on profitability through capital.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
30 July 2025
ISBN
978-94-6463-758-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-758-8_150How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Andini Ismail
AU  - Abd Rakhman Laba
AU  - Andi Aswan
PY  - 2025
DA  - 2025/07/30
TI  - The Effect of Credit Risk, Liquidity Risk and Management Efficiency on Profitability Through Capital
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 1885
EP  - 1899
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_150
DO  - 10.2991/978-94-6463-758-8_150
ID  - Ismail2025
ER  -