The Effect Of Capital Adequacy Ratio On Return On Assets With Problem Credit Ratio Moderation

The study aims to determine the effect of Capital Adequacy Ratio on Return On Asset with the moderatiom of Non-Performing Loan sub sector of national foreign exchange private banks listed on the Indonesian stock exchange (IDX) in 2014-2018 with a population of 22 banks. The analysis technique used are simple Linear Regression and Moderated Regression Analysis (MRA). The result showed that the Capital Adequacy Ratio has a positive and significant effect on Return On Asset. While the Capital Adequacy Ratio of Non-Performing Loan is not able to moderate the Capital Adequacy Ratio with Return On Asset.


INTRODUCTION
The existence of financial intermediaries institution namely banks, is very important in a In achieving optimal ROA, banks are faced with various risks including credit risk. Credit risk can be seen from the amount of Non-Performing Loans (NPL). The amount of NPL will affect ROA and CAR, because the greater the credit risk faced by banks will increase the formation of Allowance for Earning Asset Losses (PPAP) from owned equity, so that the reduced share of equity which is a component of capital adequacy.
Some previous studies show inconsistent results. This encourages this research. Judging from the background of these problems, then a study entitled "The influence of the Capital Adequacy Ratio (CAR) on Return On Assets with the Moderation of Problematic Credit Ratios". Based on the background described above, it can be concluded the formulation of the problem from this study: (1) (2014) shows that CAR has a positive and not significant effect on profitability proxied by ROA. This study is in line with the results of research of Riski Agustiningrum (2014) shows that CAR has no significant effect on ROA.
However, this is different from the results of Putu Agus Atmaja and Ketut Sujana (2014) research that shows that CAR has a positive and significant effect on profitability proxied by ROA. The results of Gusti Ayu Dwi A and Nyoman Abundanti (2018) showed that CAR had a positive and significant effect on ROA. This study is in line with the research results of Samsurizal and Astohar (2016) and shows that CAR has a positive and significant effect on profitability (ROA).
Research conducted by Sri Septriani and IW Ramantha (2014) shows that NPL has a positive effect and significant effect on the relationship between CAR and ROA. Research conducted by Wayan Suardita and M. Asri Dwija Putri shows that credit risk has a significant effect on CAR's relationship with profitability. This study is not in line with the results of Putu Agus and Ketut Sujana's (2014) research showing that NPL results have a negative effect on the relationship between CAR and Profitability. Based on these results, the research hypothesis is: Hypothesis-1: It is suspected that the Capital Adequacy Ratio has a positive and significant effect on Return On Assets. Hypothesis-2: t is suspected that the Non-Performing Loans can moderate the influence of Capital Adequacy Ratio with Return On Assets.

METHOD
The population in this study is the National Private Foreign Exchange Bank in 2014-2018 using data collection methods used are secondary data, namely financial statements from 2014-2018 by accessing www.idx.co.id The determination of the sample is done by Purposive Sampling with the following sample criteria: 1) Public Private National Bank Foreign Exchange Public listed on the IDX; 2) Having the most complete and published financial statements from 2014-2018; 3) Present the audited annual financial statements for the 2014-2018 period; 4) Present information in the financial statements relating to the research variables; 5) Presenting in full the ratio data needed in this study during the 2014-2018 periods. Based on these criteria, the sample used in this study were 10 banks from 22 banks with five years of observation. The variables used: 1) the independent variable is the Capital Adequacy Ratio; 2) The independent variable is the Troubled Credit Ratio; 3) The moderating variable is Return On Assets. Hypothesis testing in this study was conducted using Simple Linear Regression and Moderated Regression Analysis (MRA). MRA is a special application of linear multiple regression where the regression equation contains an interaction element (Ghozali, 2011: 223). According to (Sugiyono, 2010: 270 = confounding variable Linear regression test is done after the data is free from the classic assumption test, that is, a normality test is performed to test whether in the regression model the independent variable and the dependent variable have a normal distribution or not (Ghozali, 2012: 160), the heteroscedasticity test aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another. According to (Ghozali, 2012: 110) the autocorrelation test aims to test whether in a linear regression model there is a correlation between the interruption error in the t period and the confounding error in the t-1 period (before). Table 1 Source: SPSS data processing results 23 In Table 1, the minimum ROA value is 0.24 obtained by CIMB Niaga Bank, the maximum value is 3.86 obtained by Mestika Dharma Bank, and the mean (average) ROA value is 1.6336 and the standard deviation is 0, 84859. Standard deviation values that are smaller than the average value indicate that ROA data are normal. The smaller the standard deviation the better, because the small standard deviation indicates a small deviation.

RESULT AND DISCUSSION
The Capital Adequacy Ratio shows that the minimum value of 15.17 obtained by Bank Maybank Indonesia, the maximum value of 35.12 obtained by Bank Mestika Dharma, and the mean (average) CAR value of 21.2324 and the standard deviation of 4, 93967, Standard deviation values smaller than the mean indicate that the data from the CAR are normal.
The Non-Performing Loan Ratio shows the result that the minimum value of 0.34 obtained by Capital Indonesia Bank, the maximum value of 6.11 obtained by Bank Artha Graha International, the mean value (average) of NPL of 2.6440 and the standard deviation of 1, 10158. Standard deviation values that are smaller than the average value indicate that the data from the NPL is normal.
The interaction between the Capital Adequacy Ratio and the Non-Performing Loan shows that the minimum value is 5.59, the maximum value is 126.08, the average value is 55.9674 and the standard deviation value is 24.92706. The standard deviation of interactions between the Capital Adequacy Ratio and the Non-Performing Loan is smaller than the average, indicating that the CAR and NPL data are normal.

Tabel 2 Normality Test Results
Source: SPSS data processing results 23 Based on the results of the classic assumption test value Kolmogrov Smirnov test, it can be seen that the Asymp value. Sig (2-tailed) of 0,200. Asymp Value Sig that exceeds the level of significant (0.05), shows that there is no centralization or grouping of data at one point, so that it can be said that the residual data in this study are normally distributed.

Figure 1 Heteroscedasticity Test Results
Source: SPSS data processing results 23 Based on the picture above it can be seen that the residual data in the two regression models spreads both above and below the 0 point and does not form a specific pattern. Thus the regression model proposed in this study does not occur symptoms of heteroscedasticity.  The results of the simple linear regression equation show that the coefficient of the independent variable CAR which is positive means it has a direct effect on Return On Assets. Simple linear regression results can also be seen Adjusted R ^ 2 value of 0.371. This value shows that 37.1% of the variation in Return On Assets (ROA) which can be explained by the Capital Adequacy Ratio (CAR), while the remaining 62.9% is explained by other indicators that can affect ROA. The second hypothesis states that Non-Performing Loans are able to moderate the effect of Capital Adequacy Ratio with Return on Assets. Persistently obtained t count of -1.062 and a significance of 0.294. These results indicate that the Non-Performing Loan has a negative effect on the relationship between the Capital Adequacy Ratio and the Return On Asset or the Credit Ratio is not able to moderate the relationship between the Capital Adequacy Ratio to the Return On Asset.

CONCLUSION
Based on the results of testing and discussion that has been done, it can be concluded that: 1) Capital Adequacy Ratio has a significant effect on Return On Assets. So the first hypothesis can be accepted; 2) Non-Performing Loans negatively affect the relationship between Capital Adequacy Ratio and Return on Assets or Credit Ratio is not able to moderate the relationship between Capital Adequacy Ratio to Return on Assets.
Based on that conclusions, suggestions for further authors to add or replace other variables such as those that affect Return On Assets such as BOPO, LDR, ROI and are expected to be able to examine with other variables outside this variable in order to obtain more varied results that can describe things anything that can affect ROA and can extend the observation period last 7 years.