Advances in Management & Financial Reporting
Vol. 2 No. 3 (2024): June - September

Examines several things that affect the price of banking stocks: Evidence from Indonesia

Ameliana, Yana (Unknown)



Article Info

Publish Date
15 Aug 2024

Abstract

Purpose: This study analyzes the effect of return on assets (ROA), net profit margin (NPM), debt-to-equity ratio (DER), and earnings per share (EPS) on the share price of banking companies on the Indonesia Stock Exchange (IDX). Research Design and Methodology: This study uses secondary data from 6 banking companies selected by purposive sampling based on financial reports for 2018–2022. The analysis was conducted using IBM SPSS version 25 to test the relationship between these variables. Findings and Discussion: The analysis shows that EPS has a positive and significant effect on stock prices, while DER shows a negative but insignificant effect. ROA and NPM show a positive but insignificant effect. Implications: This research guides investors to pay more attention to EPS when making investment decisions and encourages companies to improve operational performance to attract investors. Novelty: This research is unique in its particular focus on the banking sector in Indonesia and its integration of fundamental analysis from short-term and long-term perspectives.

Copyrights © 2024






Journal Info

Abbrev

AMFR

Publisher

Subject

Economics, Econometrics & Finance

Description

Founded in 2023, Advances in Management & Financial Reporting publishes original research that promises to advance our understanding of Fianancial management & Financial Reporting over diverse topics and research methods. This Journal welcomes research of significance across a wide range of primary ...