ABSTRACT
This study examines and provides empirical evidence for the relationship between accounting and capital market risk measurement for a sample of ten Indonesian banks traded on the Indonesia Stock Exchange from 2011 to 2015. By applying panel data regression analysis, the results show that loan loss provision, liquidity, equity to assets, and bank size all appear to be significantly associated with total risk. Equity to assets and size are also significantly related to systematic risk, while size is also significantly related to specific risk within the chosen banks during the period 2011 to 2015. Some suggestions are put forward relating to the banks which were used as samples in this research and the investors who may wish to invest in banking firms, and for facilitating academic research.
