Effect of Mudharabah and Musyarakah Financing on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia
Faris Kurnia Hakim (a*), Mauizhotul Hasanah (b), Siti Zulaikha (c)
(a) Faculty of Economic and Business, Airlangga University, fariskhakim[at]gmail.com*
(b) Faculty of Economic and Business, Airlangga University, hasanahidzoh[at]gmail.com
(c) Faculty of Economic and Business, Airlangga University
siti-z[at]feb.unair.ac.id
Abstract
This research was conducted to determine the effect of mudharabah and musyarakah financing simultaneously and partially on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia. The object of research is all Islamic Rural Banks (BPRS) in Indonesia from January 2016 to December 2018. The research approach used is a quantitative approach. The analysis technique used is OLS (Ordinary Least Squares) regression. The results of this study are that financing using mudharabah and musyarakah contracts simultaneously has a significant effect on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia. Mudharabah financing partially has a significant effect on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia. Musyarakah financing partially has a significant effect on Return On Assets of Islamic Rural Banks (BPRS) in Indonesia.
Keywords: Mudharabah, Musharakah, Return On Assets (ROA), BPRS
Topic: Islamic Micro finance