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The Effect of Capital Adequacy Ratio (CAR), Net Profit Margin (NPM), Return on Assets (ROA), Non-Performing Loans (NPL) and Loan to Deposit Ratio (LDR) to Stock Prices in Banking Companies on the Indonesia Stock Exchange

Journal: International Journal of Science and Research (IJSR) (Vol.8, No. 7)

Publication Date:

Authors : ; ; ; ;

Page : 1499-1510

Keywords : Stock Price; CAR; NPM; ROA; NPL and LDR;

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Abstract

This study aims to determine the effect of Capital Adequacy Ratio (CAR), Net Profit Margin (NPM), Return on Assets (ROA), Non-Performing Loans (NPL) and Loan to Deposit Ratio (LDR). simultaneous or partial share prices in the Banking Sector listed on the Indonesia Stock Exchange. The analysis method used in this study is an associative method with multiple regression analysis techniques and classical assumption testing. The data used are secondary data sourced from the Indonesian Capital Market Directory (ICMD) as well as the Annual Report from Indonesia Stock Exchange (IDX) in the form of financial statements for the period 2010-2017 in the Banking Sector listed on the Indonesia Stock Exchange. This research is expected to be a valuable input especially for investors as a consideration in making investment decisions in the capital market, also for company management is expected to be taken into consideration in making decisions on stock prices in order to maximize the Banking Sector Company Stock Prices. The results showed that simultaneously CAR, NPM, ROA, NPL and LDR had a significant effect on the Company's stock price. Partially CAR, NPM, ROA, NPL has a positive and significant effect on company value, while the LDR does not have a significant effect on the share price of Banking Sector Companies listed on the Indonesia Stock Exchange

Last modified: 2021-06-28 18:20:06