Journal of Management and Business Environment (JMBE)
Vol 3, No 1: July 2021

Financial Performance and Stock Price: Another Review on Banks Listed in Indonesia Stock Exchange

Erlyta Agustine Noviyanti (Sanata Dharma University)
Caecilia Wahyu Estining Rahayu (Management, Faculty of Economics, Sanata Dharma University, Yogyakarta, Indonesia)
Christina Heti Tri Rahmawati (Sanata Dharma University)



Article Info

Publish Date
02 Aug 2021

Abstract

Financial performance is an important factor to attract investors in buying stocks. This study aims to determine the influence of financial performance measured by Non-Performing Loan Ratio (NPL), Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Debt to Equity Ratio (DER), Return on Assets (ROA), and Net Profit Margin (NPM) on price of stocks of banks listed in the Indonesia Stock Exchange (IDX) during 2014-2018. Of 43 banks, there were only 31 banks fit the criteria under purposive sampling technique. The data used in this study are secondary data obtained from the official website of Indonesia Stock Exchange (www.idx.co.id). Multiple linear regression analysis was applied for analyzing the data that were tested for classic assumptions. The results showed that simultaneously NPL, LDR, CAR, DER, ROA and NPM had significant influence on stock prices. Partially, the result showed that only ROA and NPM had a significant influence on stock prices. Banks must then focus mainly on ROA and NPM in attracting investors.

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Journal Info

Abbrev

JMBE

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences Other

Description

The Journal of Management and Business Environment (JMBE) is a blind-review journal that is published by Magister Management, Soegijapranata Catholic University, Semarang, Indonesia. The journal is intended to provide forums for academicians and practitioners to disseminating relevant, high quality ...