Risk profile, secure bond, and bond rating in banking industry

Wijayanti, Erin and Yuliana, Indah (2020) Risk profile, secure bond, and bond rating in banking industry. The Winners, 21 (1). pp. 51-59. ISSN 1412-1212

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This research aimed to assess the impact of the Risk Profile on the banking industry bond ratings in Indonesia Stock Exchange (IDX) and have a rating for bonds at PT PEFINDO. Samples were selected by purposive sampling method. The population were banks listed on the Indonesia Stock Exchange in 2015-2018. The population was 44 banks and 16 banks were selected as samples. The analysis a used descriptive statistics and Partial Least Square (PLS) for testing structural and structural models. The results show that Non-Performing Loan (NPL) and Loan to Deposit Ratio (LDR) directly have a significant direct positive effect on bond ratings, and security directly do not have a significant effect on bond ratings, security strengthen risk relationships credit with a bond rating. However, security weakens the relationship between liquidity risk and the bond rating. The variables indicate that these variables can explain the bond rating of 44,4% while the remaining 55,6% is influenced by other variables not contained in the research model.

Item Type: Journal Article
Keywords: risk profile; credit risk; liquidity risk; secure bond; bond rating; banking industry
Subjects: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
Divisions: Faculty of Economics > Department of Management
Depositing User: Rini Rini Safitri
Date Deposited: 09 May 2020 06:20


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