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Masters Thesis | Management | Indonesia | Volume 12 Issue 8, August 2023

Examining the Impact of BOPO and NPL on Profitability: The Role of Capital Structure as a Mediating Factor

Sasmita Dwi Purnamasari | G. M. Djoko Hanantijo ^[7]

Abstract: This research was conducted to analyze the factors that can increase the value of profitability for PT Permodalan Nasional Madani using the ratio of operational efficiency (BOPO), credit risk (NPL), and profitability (ROA) with the Capital Structure (DER) as the mediation variable for the period 2013?2022. Sampling techniques are purposive sampling. A total of 120 data samples were collected. The analytical techniques used are path analysis, double linear regression analysis, and Sobel test. The hypothesis test using Test F, Test T, and Test R2 with a level of significance of 5%. The results of the analysis using EViews 12 showed that (1) BOPO has a significant negative impact on profitability; (2) NPLs have no significant effect on profitability; (3) BOPOs do not have a significant impact on capital structure; (4) NPLs have significant negative effects on the capital structure; (5) capital structures have a significant positive impact on profitability; and (6) capital structure is unable to mediate the impact of BOPO on profitability; (7) a capital structure capable of mediating the effect of the NPL on profitability.

Keywords: BOPO, NPL, Capital Structure, DER, Profitability, ROA

Edition: Volume 12 Issue 8, August 2023,

Pages: 730 - 733