3. Analytical Framework and Research Methodology 3.1 Determinant of sample Determination of the sample in this study using a multiple stage sampling method. In general, the criteria used by researchers to select samples are as follows: I. Registered as a member ofthe Indonesia Stock Exchange. 2. Moving in the same industry. J. Provide periodic financial reports to the Indonesia Stock Exchange and issued financial statements until the year 2006.
3.2 Variable Operationalization
Variables in this study consisted ofthe independent variables and dependent variables, namely:
a. Independent variable (X) consisted of:
I. Ratio of Assets I
Represents the ratio of loans to total assets.
2. Ratio of Assets 2 Represents the ratio of cash plus demand deposits at Bank Indonesia and other banks plus securities to total assets. J. Ratio of Assets J Represents the ratio of cash plus demand deposits at Bank Indonesia and other banks plus securities plus placements with other banks to total assets. 4. Ratio of Assets 4 Represents the ratio of earning assets to total assets, which assets consist of current accounts at other banks, placements with Bank Indonesia and other banks, the effects or securities, the bonds, loans, bill acceptances, derivative, bills receivable, the investments in shares and commitments and contingencies that have credit risk. b. Dependent variable (Y) that is the profit ofthe banking company