Title:
DOES SPIN-OFF INCREASE PROFITABILITY? A STUDY IN 8 INDONESIAN SHARIA BANKS.

Authors:
Feri Dwi Haryanto, Tri Gunarsih, Indonesia

Abstract:

This study aims to analyze the profitability differences in sharia banking before and after the spin-off. If the profitability after spin-off is higher than before spin-off, then the spin-off is favorable. Samples in this study are 8 Sharia Banks in Indonesia. The profitability indicators comprise five indicators, which are ROA, CAR, FDR, NPF, and ROA. The descriptive data shows that there is increasing profitability after the spin-off, but the analysis of the mean differences shows different results.
This study implements the Wilcox on test to analyze the mean differences of profitability before and after the spin-off, since the data not normally distributed. The result of this study shows that there is no difference in four profitability indicators. The only difference profitability indicator before and after spin-off is CAR. The results suggest that spin-off doesn't increase profitability in Sharia Banks.