SUKUK FUND ISSUANCE ON SHARIA BANKING …Cite this Article: A Atika, Dwi Saraswati, Heriyati Chrisna...

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International Journal of Civil Engineering and Technology (IJCIET)

Volume 9, Issue 9, September 2018, pp. 1531–1545, Article ID: IJCIET_09_09_149

Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=9

ISSN Print: 0976-6308 and ISSN Online: 0976-6316

©IAEME Publication Scopus Indexed

SUKUK FUND ISSUANCE ON SHARIA

BANKING PERFORMANCE IN INDONESIA

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution,

Pipit Buana Sari, Handriyani Dwilita

Department of Accounting,

Universitas Pembangunan Panca Budi, Indonesia

Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution

Department of Management,

Universitas Pembangunan Panca Budi, Indonesia

ABSTRACT

The purpose of this study is to examine how the effect of Sukuk (Islamic bonds) on

the performance of Islamic Banks in Indonesia. The research is expected to explain

that there is an increase in the performance of Islamic Banks in Indonesia, namely the

ratio of liquidity, profitability and solvability with the existence of Sukuk funds. Action

plan carried out on each evaluation strategy begins by defining a series of theoretical

concepts, relevant levels of analysis, and measurable indicators. The dependent

variable of this study is Return on Assets (ROA), Capital Adequacy Ratio (CAR) and

Financing to Deposit Ratio (FDR) and the independent variables of this study are

Sukuk (Sharia Bonds). ROA is the ratio between profit before tax to the average assets

owned by a bank in one period; CAR is the ratio of the obligation to fulfill the

minimum capital that must be owned by the bank, FDR is the ratio between the total

loan disbursed and the total third-party funds. The data analysis model uses multiple

linear regression method. Data observation that has been used is the data of these

variables in the last four years, in 2014-2017. Data has been collected from Bank

Indonesia. Data processing is carried out using SPSS Software. The results of this

study have proven that the Sukuk owned (SKD) and the Sukuk sold (SKT) do not have

the significant effect on ROA, and its have proven that the Sukuk (SKD) and Sukuk

sold (SKT) has the significant effect on CAR and FDR.

Key words: Valuation, Sukuk owned, Sukuk sold, ROA, CAR, and FDR

Cite this Article: A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi

Pratama Nasution, Pipit Buana Sari, Handriyani Dwilita, Yossie Rossanty,

Muhammad Dharma Tuah Putra Nasution, Sukuk Fund Issuance on Sharia Banking

Performance in Indonesia. International Journal of Civil Engineering and Technology,

9(9), 2018, pp. 1531-1545.

http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=9

Sukuk Fund Issuance on Sharia Banking Performance in Indonesia


1. INTRODUCTION

Along with the recognition of the concept of sharia-based finance in the world such as one

form of Islamic financial instruments that have been widely published by corporations and

countries is Sukuk [1]–[6]. Malaysia offered the first issuance Sukuk of $ 600 million in

2002. In this case was followed by the launch of a $ 400 million "Sukuk trust" from the

Islamic Development Bank in September 2003 [7]

The potential for domestic Sukuk in 2003-2007 continued to increase. In 2003 there were

only six issuers with a nominal amount of Rp. 740 billion, then in 2007 the total issuers

reached 21 issuers with a nominal value of Rp. 3.23 trillion so that the market share volume

of Islamic bonds reaches 2.5%, among the 21 issuers there are three issuers from the banking

sector, namely Bank Muamalat, Bank Syariah Mandiri and Bank Bukopin, among the three

banks there are 2 Islamic banks namely Bank Muamalat and Banks Syariah Mandiri.

In Islamic banks, capital is needed to see the bank's performance based on the capital

adequacy ratio as well as conventional banks. Capital serves to maintain public trust, as a final

buffer to protect banks from unexpected losses and maintain business continuity when the

economy experiences difficulties [8]–[10]. The efforts to encourage the bank's intermediary

function in the form of credit expansion must balance with adequate additional capital [8]–

[12]. If the bank manager cannot provide adequate additional capital, then the decrease in

capital adequacy cannot be avoided. Banks must provide a total capital of at least 8% of assets

rather than risk [8] .One alternative to increasing capital carried out by banks is to issue

bonds [5], [13].

Bonds are a statement of debt from the bond issuer to the bondholders along with a

promise to repay the principal and the coupon (bond) at the time the payment is due. Sharia

bonds with a relatively long maturity period of 5 to 7 years [2], [4], [14]. The need for

additional capital is also felt by Islamic banks to strengthen the capital structure [5]. One

example of Islamic banks in Indonesia can be seen from the Bank Syariah Mandiri ratios

before and after the issuance of Islamic bonds (Sukuk) [9], [15], [16].

Table 1 Ratios of Shariah Banking Before and After Issuance of Islamic Bonds (Sukuk)

Des 00 Des 01 Des 02 Des 03 Des 04 Des 05 Des 06 Des 07

CAR 117,18% 63,18% 38,91% 20,87% 10,57% 11,88% 12,56% 12,44%

ROA 2,60% 3,30% 3,51% 1,03% 2,86% 1,83% 1,10% 1,53%

ROE 4,10% 4,43% 3,61% 3,61% 22,28% 23,39% 18,27% 32,22%

Bank Syariah Mandiri issued Islamic bonds in October 2003 with a principal amount of

Rp. 200 billion, with a term of 5 years. From the table above can be seen after Bank Mandiri

issued Sukuk, the CAR ratio was relatively stable. For financial ratios, there was an increase

in the ROE ratio even though there was a decline in 2006 but it increased dramatically in the

following year, while ROA tended to be stable.

This research is important to be carried out to find out how much influence Sukuk

(Islamic bonds) on the performance of Islamic banking, namely ROA, CAR, and FDR. One of

them is by looking at the bank's performance based on the capital adequacy ratio because of

the increasing performance of Islamic banking. For example, strengthening the capital

structure, Islamic banks protect themselves from decreasing the capital adequacy value, so

that their capital adequacy ratio still meets the regulatory requirements so that it can survive

and maintain continuity his business.

Based on the description above, the author intends to investigate how the issuance of

Sukuk Fund such as Sukuk owned, and Sukuk sold on ROA, CAR, and FDR on Islamic

Banks in Indonesia? Therefore, the authors develop the hypotheses in this study as follows:

A Atika, Dwi Saraswati, Heriyati Chrisna H, Hernawaty Anggi Pratama Nasution, Pipit Buana Sari,

Handriyani Dwilita, Yossie Rossanty, Muhammad Dharma Tuah Putra Nasution


H1: There is a significant influence of the valuation of Sukuk owned and valuation of Sukuk

sold on ROA in Islamic Banks in Indonesia.

H2: There is a significant influence on the valuation of Sukuk owned and valuation of Sukuk

sold on CAR in Islamic Banks in Indonesia.

H3: There is a significant influence of the valuation of Sukuk owned and valuation of Sukuk

sold on FDR on Islamic Banks in Indonesia.

2. LITERATURE REVIEW

2.1. Definition of Sukuk (Sharia Bonds)

Sukuk was defined as a legal document that becomes proof of capital surrender to the

ownership of a property that may be transferred and has an eternal or long-term nature [4].

Economic experts define Sukuk in different views. Therefore, it is necessary to be assertive

that Sukuk is a sharia investment product that places the use of ownership rights in a tangible

asset, usufructs, and services. Alternatively, the reasonableness of the project or a particular

form of investment [5].

In general, the formation of Sukuk has at least three parties involved namely the originator

or heir who acts as the legal owner of the asset. Then, a Special Purpose Vehicle (SPV) is a

trusted body that acts to issue Sukuk certificates, and Sukuk holders or investors who invest in

this product (Sukuk).

A set of assets will be selected by the originator to be sold to SPV, with the understanding

that this asset will be leased back by the originator (if Ijarah Sukuk is used), with the agreed

rental value and the specified period will be purchased initially by the originator at the same

price. Then the SPV secures its assets with "Sukuk Ijarah" to sell to investors so that the asset

becomes the joint property of the investors who agree not to be distributed but entrusted to the

SPV for rent and the rental proceeds will be shared with investors according to their

respective capital investments. At the time the Sukuk has matured, the flow of rents is stopped

and the joint assets owned by the investor, will be sold initially by SPV to the originator and

the selling price will be paid initially to each investor according to the initial capital value.

2.2. Banking Performance

Bank's Health level is the result of an assessment of the Bank's condition that is carried out on

the Bank's risk and performance or in other terms the Bank's Health level is a reflection that a

bank can perform its functions properly. [10] [9] define bank health as the ability of a bank to

conduct banking operations normally and be able to fulfill all its obligations adequately in

ways that are under applicable banking regulations. The definition of the health of the bank

above is a comprehensive limitation because the health of the bank does cover the health of a

bank to carry out all its banking business activities [8].

In other words, the soundness of the bank is also closely related to the fulfillment of

banking regulations (compliance with Bank Indonesia). According to the Bank of Settlement,

banks can be said to be healthy if the bank can carry out control over aspects of capital, assets,

profitability, management and its liquidity aspects. Definition of bank health according to

Bank Indonesia if the bank meets bank health requirements by taking into account Capital,

Asset Quality, Management Quality, Rentability, Liquidity, Solvability, and other aspects

related to the bank's business [8].

Banks need to identify problems that might arise from bank operations due to the

increasing complexity and risk profile. For banks, the final result of the assessment of the

bank condition can be used as a means of establishing a business strategy in the future while



for Bank Indonesia, it is used as a means of determining and implementing a bank supervision

strategy by Bank Indonesia [8][9][17].

Bank Indonesia requires banks to submit periodic financial reports to the Central Bank

and publish the report through print media: newspapers and magazines. The form and

contents of the report are set uniformly. This financial report is used by the Central Bank and

the public to assess the health of the bank concerned

2.3. Assessment Techniques with the CAMELS Method

The following is an explanation of the CAMEL method:

1. Capital

At this time, the requirement to establish a new bank requires paid up capital of Rp. 3 trillion.

However, the bank's provisions are already in place, and the capital number may be less than

that amount. The definition of capital adequacy is not only calculated from the nominal

amount, but also from the capital adequacy ratio, or often referred to as the Capital Adequacy

Ratio (CAR). This ratio is a comparison between the amount of capital and risk-weighted

assets (RWA). At this time following the applicable provisions, the CAR of a bank is at least

8%.

2. Quality of Assets

Although in real terms banks have substantial capital, if the quality of their productive assets

is weak, the capital condition may be worse. This is partly related to various issues such as the

formation of reserves, valuation of assets, provision of loans to related parties, and so on.

3. Management

Assessment of management factors in assessing the soundness of commercial banks is carried

out by evaluating the management of the bank concerned. The assessment is carried out using

about one hundred questionnaires grouped into two major groups, namely the general

management group and the risk management questionnaire.

4. Earning

Assessment is based on the profitability or earning of a bank that is seeing the ability of a

bank in creating profit. Assessment in this element based on two types, namely:

Profit to Total Assets Ratio (ROA / Earning 1).

Operating Expense Ratio to Operating Income (Earning 2).

5. Liquidity

Liquidity is a ratio to assess bank liquidity. Assessment of bank liquidity is based on two type

ratios, namely:

The ratio of the net liabilities of call money to current assets.

The ratio between credit to funds received by the bank

The level of health of commercial banks can be seen from two sides, qualitative and

quantitative. From a qualitative perspective, it is seen from the manager, the history, the

owner. The quantitative side can be seen from the ratio of liquidity, solvency, profitability,

capital adequacy ratio and Financing Deposit Ratio.

3. RESEARCH METHODOLOGY

3.1. Research Approaches and Materials




This research approach uses a quantitative approach which is dimensioned causal relationship,

that is a study conducted on facts to prove empirically about the influence of a variable with

other variables [18]–[21]. The dependent variable (Y) is Return on Assets (ROA), Capital

Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) and the independent variable

(X) is the value of the Sukuk owned and the Sukuk sold.

3.2. Conceptual Framework

In the picture below shows Sukuk (Sharia bonds) affect Return on Assets (ROA), Capital

Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR).

Figure 1 Conceptual Framework

3.3. Parameters observed

Variables Operational definitions used in this study are Return on Assets (ROA), Capital

Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Valuation of Sukuk owned and

valuation of Sukuk sold.

Table 2 Variable Operationalization

No Variables Definitions Indicators Scale

1. Return On

Asset (ROA)

Ratio between profit before

tax to average assets owned

by a bank in one period.

Profit Before Tax x 100 %

ROA=

Total Average asset

Ratio

2 Capital

Adequacy

Ratio (CAR)

The banks must have the

minimum capital adequacy

ratio.

CAR = Capital x 100%

Risk Weighted Assets

Ratio

3 Financing to

Deposit Ratio

(FDR).

Comparison between total

loans disbursed and total third

party funds.

FDR = Financing x 100%

Total Third Party Fund

Ratio

4 Valuation of

Sukuk owned

Sukuk Nominal Value owned

by Islamic Banking. Valuation of Sukuk owned

Ratio

5 Valuation of

Sukuk sold

Sukuk Nominal Value sold by

Islamic Banking Valuation of Sukuk sold

Ratio

3.4. Types and Scope of Research



The data in this study is the annual data on Islamic Banking which is the source of Bank

Indonesia financial statements. The observed data for this research variable is data for the last

four years from 2014 to 2017.

3.5. Data Collection Techniques

Data collection techniques in this study include documentation methods where data has been

collected from data collection agencies, and it has been published to the public (Kuncoro,

2006).

3.6. Population and Samples

The population of this study was all Islamic Banking in Indonesia which was recorded in the

financial statements of the Financial Services Authority (OJK) from 2014-2017.

3.7. Data Analysis Techniques

This study analyzes the data with multiple linear regression method that is run with SPSS

Software.

Y1 = α + β1X1 + β2X2 + e

Y2 = α + β1X1 + β2X2 + e

Y3 = α + β1X1 + β2X2 + e

Terms:

Y1 : ROA β1- β2: Regression Coefficient

Y2 : CAR α: Constant coefficient

Y3 : FDR e: Error term

X1 : Valuation of Sukuk owned

X2 : Valuation of Sukuk sold

4. RESULTS AND DISCUSSION

4.1. Descriptive Statistics

Descriptive analysis is an analysis that concisely describes numerical data. This analysis aims

to describe the effect of Sukuk Fund Issuance on Sharia Banking Performance based on time

series sample data during 2014 until 2017. The following are the results of the descriptive

statistics test from this study.

Table 3 Descriptive statistics

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

SKD 48 4606.84 35386.20 16792.76 8780.60

SKT 48 500.00 3150.00 1669.39 837.21

ROA 48 .08 1.16 0.76 0.28

CAR 48 14.09 17.91 15.64 0.96

FDR 48 79.65 102.22 89.48 6.43

Valid N (listwise) 48




The table above shows that the Sukuk Valuation Owned by Islamic Banking has an

average value of 16792.76 billion, with a standard deviation of 8780.60 billion. This data also

shows the lowest value is 4606.84 billion and the highest value is 35386.20 billion.

The data also shows the data distribution is normal. The reason is the average value is

higher than the standard deviation value reflects homogeneous data. The valuation of Sukuk

sold by Islamic Banking has an average value of 1669.39 billion with a standard deviation of

837.21 billion. The data explains that the lowest value is 500 billion and the highest value is

3150 billion. Data distribution is normal, and the reason is the average value is higher than the

standard deviation value reflects the data is homogeneous.

ROA value in Islamic Banking has an average value of 0.76%, with a standard deviation

of 0.28%. The lowest value is 0.8%, and the highest value is 1.16%. Data distribution is also

normal. It is marked by an average value higher than the standard deviation value. It can also

be stated the data is homogeneous.

CAR value in Islamic Banking has an average value of 15.64% with a standard deviation

of 0.96%. The lowest value is 14.09%, and the highest value is 17.91%. Data distribution is

normal, and the reason is the average value is higher than the standard deviation value which

can be stated the data is homogeneous.

FDR value in Islamic Banking has an average value of 89.48% with a standard deviation

value of 6.43%. The lowest value is 79.65%, and the highest value is 102.22%. Data

distribution is normal, and the reason is the average value is higher than the standard

deviation value.

4.2. Normality Test

Table 4 Results of Normality Test

One-Sample Kolmogorov-Smirnov Test

Unstandardized

Residual

Unstandardize

d Residual

Unstandardized

Residual

N 48 48 48

Normal

Parametersa

Mean .0000000 .0000000 .0000000

Std. Deviation .27080750 .84677774 2.59434367

Most Extreme

Differences

Absolute .103 .114 .069

Positive .064 .107 .056

Negative -.103 -.114 -.069

Kolmogorov-Smirnov Z .714 .789 .476

Asymp. Sig. (2-tailed) .688 .563 .977

a. Test distribution is Normal.

The above normality test table uses Kolmogorov-Smirnov where the values of k-s are

0.688, 0.563 and 0.977. The results explained that these values were higher than the

significance level of 0.05. Thus the data has been normally distributed.



4.3. Multicollinearity Test

Table 5 Results of Multicollinearity

Model

Collinearity Statistics

Tolerance VIF

1 (Constant)

SKD 1.000 1.000

SKT 1.000 1.000

Based on the table from the results of the multicollinearity test above, explains that there

are no variables that have a VIF value <10. The tolerance value of all variables is more than

(>) 0.1. Thus it was concluded that the regression model for the first equation in this study

was free from multicollinearity.

4.4. Heteroscedasticity Test

The heteroscedasticity test aims to assess whether in the regression model there is residual

variation inequality from other observations. If there is no clear pattern, and the points spread

above and below the number 0 on the Y axis, it shows that there is no heteroscedasticity. Thus

the regression model is feasible to predict decisions.

4.5. Autocorrelation Test

Autocorrelation test aims to test whether in the linear regression model there is a correlation

between the interfering error in period t with the error in the period t-1 or earlier.

Autocorrelation problems occur in regression models with time series data. How to identify is

to see the value of Durbin Watson (D-W):

1. If the D-W value is below -2, that means there is autocorrelation.

2. If the D-W value is between -2 to +2, that means there is no autocorrelation.

3. If the D-W value is above +2, that means there is a negative autocorrelation.

Here are the results of the autocorrelation test shown below:

Table 6 Results of Autocorrelation Test First Regression Equation

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .223a .050 .008 .27676 1.771

a. Predictors: (Constant), SKT, SKD

b. Dependent Variable: ROA

From the table above shows the results of the first regression equation autocorrelation test

which explains that the statistical value of Durbin-Watson was 1.771 or between 1.0 until 2.0.

It indicated that there was no negative or positive autocorrelation.




Table 7 Results of Autocorrelation Test Second Regression Equation

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .467a .218 .183 .86539 1.435


b. Dependent Variable: CAR

For the results of the second regression equation autocorrelation test that was found the

statistical value of Durbin-Watson was 1.435 or between 1.0 until 2.0. It showed that there

was no negative or positive autocorrelation.

Table 8 Results of Autocorrelation Test Third Regression Equation

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .915a .837 .830 2.65137 1.528


b. Dependent Variable: FDR

For the results of the third regression equation autocorrelation test, it was found that the

statistical value of Durbin-Watson was 1.528 or between 1.0 until 2.0. It showed that there

was no negative or positive autocorrelation.

4.6. The Coefficient of Determination (R2)

The coefficient of determination (R2) is to see how the variation in the value of the dependent

variable is affected by the variation in the value of the independent variable. The coefficient

of determination between zero and one, the value close to one will explain that the

independent variables provide the information needed to predict the dependent variable. The

following is the coefficient of determination from this study:

Table 9 Coefficient of determination First Regression Equation

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .223a .050 .008 .27676 1.771



From the table of the first regression equation above, the value of Adjusted R square is

0.008 which means that only 8% variation of ROA can be explained by the second variation

of the variable Sukuk owned (SKD), and Sukuk sold (SKT), whereas 92 percent (100-8% =

92%) is explained by other reasons which are outside the regression model. Value of Std.

Estimation Error (SEE) is 0.27676. These results explain the smaller SEE value makes the

regression model more appropriate to predict the dependent variable.



Table 10 Coefficient of determination Second Regression Equation

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .467a .218 .183 .86539 1.435



From the table of the second regression equation above, the value of Adjusted R square is

0.183 which means that only 18.3% variation of CAR can be explained by the second

variation of the variable Sukuk owned (SKD), and Sukuk sold (SKT), whereas 81.7 percent

(100-18.3% = 81.7%) is explained by other reasons which are outside the regression model.

Value of Std. Estimation Error (SEE) is 0.86539. These results explain the smaller SEE value

makes the regression model more appropriate to predict the dependent variable.

Table 11 Coefficient of determination for the third regression equation

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-

Watson

1 .915a .837 .830 2.65137 1.528



From the table of the third regression equation above, the value of Adjusted R square is

0.830 which means 83% variation of FDR can be explained by the second variation of the

variable Sukuk owned (SKD), and Sukuk sold (SKT), whereas 17 percent (100-83% = 17%)

is explained by other reasons which are outside the regression model. Value of Std.

Estimation Error (SEE) is 0.265137. These results explain the smaller SEE value makes the

regression model more appropriate to predict the dependent variable.

4.7. F-Test Statistics

Table 12 F-test for the first regression equation

ANOVAb

Model

Sum of

Squares df Mean Square F Sig.

1 Regression .181 2 .090 1.181 .316a

Residual 3.447 45 .077

Total 3.628 47



From the F-test for the first regression equation explains that F-count has a value of 1,181,

while F-table (α = 0.05; df regression 2; df residual; 47) is equal to 2.87 with a significance

level of 0.316. This result shows F-count <F-table or 1,181 <2.87. The significance level is

higher than the probability of 0.05 (0.316> 0.05). Thus, these results indicate that the

hypothesis (Ha) is rejected and the Sukuk variable owned (SKD), and Sukuk sold (SKT)

simultaneously have an insignificant effect on the Return on Asset (ROA) variable.




Table 13 F-test for the second regression equation

ANOVAb

Model

Sum of


1 Regression 9.377 2 4.688 6.260 .004a

Residual 33.701 45 .749

Total 43.078 47



From the F-test for the second regression equation explains that F-count has a value of

6.260, while F-table (α = 0.05; df regression 2; df residual; 47) is equal to 2.87 with a

significance level of 0.004. This result shows F-count > F-table or 6.260 > 2.87. The

significance level is lower than the probability of 0.05 (0.004 < 0.05). Thus, these results

indicate that the hypothesis (Ha) is accepted and the Sukuk variable owned (SKD), and Sukuk

sold (SKT) simultaneously have the significant effect on Capital Adequacy Ratio (CAR).

Table 14 F-test for the third regression equation

ANOVAb

Model

Sum of


1 Regression 1625.152 2 812.576 115.591 .000a

Residual 316.339 45 7.030

Total 1941.491 47



From the F-test for the third regression equation explains that F-count has a value of

115.591, while F-table (α = 0.05; df regression 2; df residual; 47) is equal to 2.87 with a

significance level of 0.000. This result shows F-count > F-table or 115.591 > 2.87. The

significance level is lower than the probability of 0.05 (0.000 < 0.05). Thus, these results

indicate that the hypothesis (Ha) is accepted and the Sukuk variable owned (SKD), and Sukuk

sold (SKT) simultaneously have the significant effect on Financial Debt Ratio (FDR).

4.8. T-Test

Table 15 Results of t-test For the First Regression Equation

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) .843 .118 7.133 .000

SKD 2.323E-6 .000 .073 .505 .616

SKT -7.016E-5 .000 -.211 -1.455 .153

a. Dependent Variable: ROA



Based on the table above, t-test result shows the first regression equation as follows:

Sukuk owned (SKD) has a significant value of 0.616, the value is higher than the degree of

test 0.05 (0.616> 0.05), then the effect of Sukuk owned (SKD) on Return on Assets (ROA) is

not significant at the degree of test 0.05. This result indicates that the Sukuk owned (SKD)

partially has a positive but insignificant effect on Return on Assets (ROA).

The Sukuk sold (SKT) has a significant value of 0.153, the value is higher than the degree of

test 0.05 (0.153> 0.05), then the effect of Sukuk sold (SKT) on Return on Assets (ROA) is not

significant at the degree of test 0.05. This result explains that the Sukuk sold (SKT) partially

has a negative and insignificant effect on Return on Assets (ROA).

Based on the data that has been displayed, the results of the t-test for the second regression

equation are as follows:

Table 16 Results of t-test For the second Regression Equation

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients


1 (Constant) 15.261 .369 41.320 .000

SKD 4.581E-5 .000 .420 3.186 .003

SKT .000 .000 -.206 -1.561 .126

a. Dependent Variable: CAR

Based on the table above, t-test result shows the second regression equation as follows:

Sukuk owned (SKD) has a significant value of 0.003, the value is lower than the degree of test

0.05 (0.003 < 0.05), then the effect of Sukuk owned (SKD) on Capital Adequacy Ratio (CAR)

is significant at the degree of test 0.05. The result indicates that the Sukuk owned (SKD)

partially has a positive and significant effect on Capital Adequacy Ratio (CAR).

The Sukuk sold (SKT) has a significant value of 0.126, the value is higher than the 0.05

degree of test (0.126 > 0.05), then the effect of Sukuk sold (SKT) on Capital Adequacy Ratio

(CAR) is insignificant at the degree of test 0.05. The result explains that the Sukuk sold (SKT)

partially has a negative and insignificant effect on Capital Adequacy Ratio (CAR).

Based on the data that has been displayed, the results of the t-test for the third regression

equation are as follows:

Table 17 Results of t-test For the Third Regression Equation

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients


1 (Constant) 100.628 1.132 88.927 .000

SKD .000 .000 -.915 -15.205 .000

SKT 6.041E-5 .000 .008 .131 .897

a. Dependent Variable: FDR

Based on the table above, t-test result shows the third regression equation as follows:




Sukuk owned (SKD) has a significant value of 0.003, the value is lower than the degree of test

0.05 (0.000 < 0.05), then the effect of Sukuk owned (SKD) on Financial Debt Ratio (FDR) is

significant at the degree of test 0.05. The result indicates that the Sukuk owned (SKD)

partially has a negative and significant effect on Financial Debt Ratio (FDR).

The Sukuk sold (SKT) has a significant value of 0.897, the value is higher than the 0.05

degree of test (0.897 > 0.05), then the effect of Sukuk sold (SKT) on Financial Debt Ratio

(FDR) is insignificant at the degree of test 0.05. The result explains that the Sukuk sold (SKT)

partially has a positive and insignificant effect on Financial Debt Ratio (FDR).

5. CONCLUSIONS AND SUGGESTIONS

5.1. Conclusions

Based on the results of the study the authors concluded as follows:

1. First Regression Analysis

Simultaneously Sukuk owned (SKD) and Sukuk sold (SKT) does not have a significant effect

on ROA.

Partially the Sukuk (SKD) does not have a significant effect on ROA.

Partially the Sukuk sold (SKT) does not have a significant effect on ROA.

2. Second Regression Analysis

Simultaneously Sukuk owned (SKD) and Sukuk sold (SKT) have a significant effect on CAR.

Partially the Sukuk owned (SKD) has a significant effect on CAR.

Partially the Sukuk sold (SKT) does not have a significant effect on CAR.

3. Third Regression Analysis

Simultaneously Sukuk owned (SKD) and Sukuk sold (SKT) have a significant effect on FDR.

Partially the Sukuk owned (SKD) has a significant effect on FDR.

Partially the Sukuk sold (SKT) does not have a significant effect on FDR.

5.2. Suggestions

The authors propose the following suggestions:

For Islamic Banking

Islamic banks should determine the value of Sukuk in accordance with their capital

requirements in order to maintain the CAR and FDR values. In this case, the influence of the

Sukuk (SKD) influences the CAR and FDR.

For Further Researchers

The authors expect to test other variables such as EPS, ROE, to further expand the results of

this study. It is recommended to use other models such as moderating regression and path

analysis.

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