Intermediary Function, Capital Structure, Risk and Financial, Performance of Islamic Bank in Indonesia

Abstract

This study aimed to examine the influence of intermediary function and capital structure to financing risk and the influence of intermediary function, capital structure and financing risk to financial performance of islamic banks in Indonesia. This research use explanatory method which explains the effect of indpendent variables to dependent variables through a hypothesis test. The population of this research is islamic banks in Indonesia. Technique of samping uses a purposive sampling Research data is secondary data, consist of of 11 islamic banks during five years, 2013 upto 2017. Method of analysis data is strutural equation model with partial least square program. The finding of results concluded that (a) capital structure had a significant influence toward financing risk of islamic banks in Indonesia; (b) capital structure had a significant influence toward financial performance of islamic banks in Indonesia; (c) intermediary function had a significant influence toward financing risk of islamic banks in Indonesia; (d) intermediary function had no significant influence toward financial performance of islamic banks in Indonesia and (e) financing risk had a significant influence toward financial performance of islamic banks in Indonesia.