Influence of CR and DAR on ROA and Impact on CAR at BJB Syariah Period 2020–2024

Abstract

This study was motivated by inconsistencies between empirical data and theoretical expectations, as well as research gaps in previous studies examining the effects of the CR and DAR on ROA and their impact on the CAR. This study aims to contribute to the body of knowledge on Sharia financial management by demonstrating whether short-term liquidity management (CR) and asset leverage (DAR) in regional Sharia banks indirectly mitigate capital risk (CAR) through the optimization of profitability (ROA) amidst the shift in financial regulations. This research employed a quantitative associative approach using secondary data obtained through documentation and literature review. The sample consisted of 20 quarterly financial statements from 2020 to 2024, selected using purposive sampling.  The findings indicate that CR has no significant effect on ROA (? = ?0.358; p = 0.132), and DAR also has no significant effect on ROA (? = 0.104; p = 0.653). Furthermore, CR (? = 0.086; p = 0.752), DAR (? = ?0.023; p = 0.927), and ROA (? = 0.076; p = 0.780) do not have significant effects on CAR. The path analysis also shows that ROA does not significantly mediate the relationship between CR and CAR or between DAR and CAR, indicating that the indirect effects are not statistically significant.