JASF (Journal of Accounting and Strategic Finance)
Vol 1 No 1 (2018): JASF (Journal of Accounting and Strategic Finance)

Factors Influencing the Stock Price of Banking Companies in the Indonesia Stock Exchange

Muria Kartika Perdana (Unknown)
Constance Henryette Adriana (PT. Prambanan Dwipaka, East Java - Indonesia)



Article Info

Publish Date
30 Jun 2018

Abstract

The banking sector is the industry most regulated by the government has given the importance of this sector in the country's economy as a bridge for financing the real sector. Stocks in the banking industry are one of the stocks that are highly sought after by investors. Banks that have good health will attract many investors. The purpose of this study is to prove the influence of the bank's health level – risk profile and good corporate governance – on stock price in the banking sector companies on the IDX. The data used in this study are secondary data in the form of financial statements of banking companies. The independent variables in this study are risk profile and GCG, which consist of Non Performing Loans (NPL), Interest Rate Risk (IRR), Loan to Deposit Ratio (LDR), Managerial Ownership, Institutional Ownership, Independent Commissioner, Size of Board of Directors, Committee Audit and dependent variable Share Price. The sampling method in this study was purposive sampling with a sample of 7 banking companies registered on the Indonesia Stock Exchange. The stock price is the closing price on Yahoo Finance. The data analysis technique used is a parametric statistical test – multiple linear regression analysis and classical assumption test, including normality test, autocorrelation test, multicollinearity test, and heteroscedasticity test. Test of hypothesis used the R Square test, partial t-test, and F test. The results of the study prove that the Non-Performing Loan (NPL), Independent Commissioner, and Audit Committee variables have no influence on the Stock Price. However, the Interest Rate Risk (IRR), Loan to Deposit Ratio (LDR), Managerial Ownership, Institutional Ownership, and the Size of the Board of Directors have an effect on Stock price.

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Journal Info

Abbrev

jasf

Publisher

Subject

Economics, Econometrics & Finance Education Environmental Science Social Sciences Other

Description

Journal of Accounting and Strategic Finance (JASF) is a blind peer-reviewed journal that publishes theoretical, empirical, and experimental research papers. The Journal encourages the utilization of economic, financial and sociological theories to investigate, analyze, and explain issues in ...