The purposive of this research is to examine the effect of risk, management quality, size and liquidity toward Capital Adequacy Ratio (CAR). This research designed as an explorative research with used purposive sampling method to take the data. Data for this study was collected is publication financial report of banks listed in Indonesian Stock Exchange the period 2003-2008. Statistical analysis by using method of Ordinary Least Square (OLS) and Fixed Effect Method. Result of best examination by using method of Fixed Effect Method. The result of research indicated that index risk (risk of asset turnover), management quality, and asset liquidity have the negative impact toward Capital Adequacy Ratio (CAR). While liquidity of liability have the positive impact toward Capital Adequacy Ratio (CAR).
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