The Influence of Loan to Funding Ratio (LFR), Non Performing Loan (NPL), Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Operating Expenses Operating Income (OEOI) on Stock Prices (Empirical Study on Banks Listed on the ISE 2015-2019 Period)

Authors

  • Ayu Apriliyanti Sadiah, Dede Santi Nurhayati, Teisha Shakila Lutfiah, Hasna Khoirunisa, Tetty Lasniroha Sarumpaet

Abstract

This study aims to test whether the loan to funding ratio, non-performing loans, capital adequacy ratio, return on assets, and OEOI affect stock prices in banks listed on the ISE for the period 2015-2019. The research method used is descriptive and verification methods. The population in this study were banks listed on the ISE for the 2015-2019 period, totaling 43 companies. The sampling technique used was non-probability sampling with purposive sampling method, so that the sample size was 25 banks. The data analysis used is panel data regression analysis at a significance level of 5% using Eviews 9. The results showed that the loan to funding ratio and return on assets have a positive and significant effect on stock prices. Non performing loans and OEOI have a negative and significant effect on stock prices. Meanwhile, the capital adequacy ratio has a positive and insignificant effect on stock prices. In addition, the magnitude of the influence of the loan to funding ratio, non-performing loans, capital adequacy ratio, return on assets, and OEOI contributed 48.5% to the stock price.

 

Published

2020-11-01

Issue

Section

Articles