The Effect of Liquidity, Quality of Productive Assets and Company Size on the Operational Risk Disclosure of Sharia Commercial Bank (Study on Sharia Banking in Indonesia)

Abstract

In Indonesia, the growth of Islamic banks is very fast because the majority of the population is muslim so it has greater potential in developing the sharia banking industry. The development of sharia banking is now being seen by investors, regulators and other stakeholders as an alternative choice in addition to conventional banking products.This study aims to examine and review the effect of Liquidity, Quality of Productive Assets and Company Size on the Operational Risk Disclosure, case study at Sharia Banks in Indonesia. The sample used in this research uses purposive sample method with certain criteria for data analysis. Methods of multiple linear regression analysis using Eviews analysis tool for panel data processing.The result of testing with Eviews concluded that only the variable of the company size proxied with total asset have significant influence to operational risk disclosure while Liquidity variable proxied with FDR and Productive Asset Quality variable proxied with NPF have no effect to disclosure of bank operational risk.

Keywords: Liquidity, Quality of Productive Assets, Company Size and Operational Risk Disclosure.