227 IQTISHADIA 12,2 Debt and Equity-Based Financing, Size and Islamic Banks Proftability: Empirical Evidence from Indonesia 1 Roful Wahyudi Universitas Ahmad Dahlan Yogyakarta roful.wahyudi@pbs.uad.ac.id Siti Mujibatun UIN Walisongo Semarang mujibatun@walisongo.ac.id Riduwan Universitas Ahmad Dahlan Yogyakarta riduwan@pbs.uad.ac.id Abstract Islamic Banking as a fnancial institution functions to collect and distribute funds to the public. To carry out these functions, the capital structure scheme uses debt and equity based fnancing. In addition, the implementation is also infuenced by the size which ultimately affect the performance of Islamic banking. This study aims to examine debt and equity-based fnancing, size and Islamic banks proftability: empirical evidence from Indonesia. The research method used is model estimation test of Moderated Regression Analysis (MRA) to see size as moderation variable. Banks proftability is represented by ROA and ROE. This study uses Islamic bank panel data from fnancial reports published during the sample period covering 2008-2017. The empirical fndings show that debt and equity-based fnancing affect banks proftability. Furthemore, bank size does not moderate the debt and equity- based fnancing relationship to Islamic banks proftability. Keywords: Debt and equity-based fnancing, Size and islamic banks proftability INTRODUCTION In recent years, fnancial institutions have faced a dynamic, competitive, and fast-paced situation at the national and international levels. One such fnancial institution is Islamic banking that attracts the attention of Islamic and Conventional economists. Today Islamic banks operate in all regions of the world and emerge as a practical and feasible alternative system, which has a lot to offer (Akhtar, Ali, & Sadaqat, 2011). 1 Paper presented at “3 rd International Conference on Islamic Economics and Financial Inclusion (ICIEFI)”, organized by International Program Of Economics (IPIEF), Universitas Muhammadiyah Yogyakarta, Indonesia, July 11 th – 12 th , 2018. IQTISHADIA Vol. 12 (2) 2019 PP. 227 - 239 P-ISSN: 1979 - 0724 E-ISSN: 2502 - 3993 DOI : 10.21043/iqtishadia.v12i2.3539