COVID-19 Pandemic’s Impact on Return on Asset and Financing of Islamic Commercial Banks: Evidence from Indonesia

Round 1

Reviewer 1 Report

Dear authors,

 

I would like to congratulate you to the excellent work you have done. I believe this article covers a rather important and very interesting issue: COVID-19 impact on the ROA and finance forecasting of Islamic banks in Indonesia. Islamic banking is itself very specific and I believe there is not enough empirical studies covering it, so this article fills in this gap.

I have a few suggestions and questions regarding this article:

1. I suggest you change the title: Covid-19 pandemic's impact on Return on Asset and Finance Forecasting of Islamic Commercial Banks: Evidence from Indonesia
2. Row 27 – replace word „can“ with „to“
3. Row 35 – replace „STATES“ with „agrees“
4. Row 46 – become instead of becomes
5. Row 100 – explain in detail the decision and the reasons for choosing the spline regression model over ARIMA model
6. Rows 127-129 – it is still very early (considering the COVID-19 pandemic is still ongoing) to give such conclusions. Please rephrase this sentence: Even though it is too early to draw any conclusions, it seems as…
7. Row 147 – why did you choose November 2014? I would suggest you start the research from Jan 2015.
8. Row 233 – reformulate this sentence, it seems unfinished.
9. Row 267 – replace the word „part“ with section.
10. Row 280 – replace „do“ with „does“
11. Row 281-286 – please rephrase or reformulate this sentence, it is not clear enough as to what your point is. Iti s too wordy.
12. Row 313 – phillips perron test – please put it in capital first letters.
13. Row 358 – replace „marcu“ with „Marcu“
14. Rows 378-380 – Reformulate this sentence, it is not quite academic English.
15. Row 392 – replace „inline“ with „in line“ and replace „result researches“ with „the findings“.
16. Row 491 – replace „Nugroho et al“ with „who“
17. Rows 517-519 – rephrase this sentence and additionally address all the limitations of this study.

I would suggest you to improve the English language in the whole article – preferably use the services of a native speaker.

Author Response

Dear Reviewer,

Please see the attachment

Author Response File: Author Response.docx

Reviewer 2 Report

The purpose of this paper is to apply the best model for predicting ROA and financing Indonesia's Islamic commercial banks. It is important because by using appropriate predictions of both variables, the Indonesian government should adopt the right policy for bank development. In the work, Vector Autoregressive with exogenous variable (VARX) and spline regression is used. The authors argue that the use of VARX can host reciprocal relationships between time series variables and capture the influence of the Covid 19 pandemic.

The study is well conducted and sufficiently clear in the research question and objectives. However, there is a lack of bibliographic references to help better place the paper in the literature and highlight its relative contribution to it.

Therefore, it is suggested to use part of the Introduction to create a specific paragraph on the literature review, in order to strengthen the bibliography and better define the positioning of the paper in a specific research line, highlighting its contribution to the strand development.

A higher specification is also recommended for the explanation of the model used. It is suggested to implement the explanations of the formulas and of the applied method, because in some parts it is not very explicit such as for example with reference to the section dedicated to Spline Regression.

Author Response

Dear Reviewer,

Please see the attachment

Author Response File: Author Response.docx

Reviewer 3 Report

1- need to re-write the abstract, add recommandations.

2- line 127 " cannot say "there have been no research that 127
accommodate the influence of the Covid 19 pandemic on ROA and financing of Indonesia". 

3- lines 139-144 the main objective, need to re-write 

4- in the method part: what the authors means in "Data from November 2014 to 14 February 2021 is used as training data."?

5- the pandemic start in 2020, some countries were locked down early in that year, so what about Indonesia and how that could affect the results ?

6- as we are at last days in 2021 , did the author checked the ROA for the sample, to see whether the foarcasting to close to their results?

Author Response

Dear Reviewer,

Please see the attachment

Author Response File: Author Response.docx