Analysis of Factors Affecting Stock Price in Bangking Companies Listed on the Indonesia Stock Exchange with Return on Assets (ROA) as an Intervening Variable (empirical Study of Conventional Bangking Companies Listed on the Infonesia Stock Exchange for th

Abstract

Financial statements are the final records of the accounting process in a certain period that describe the company's performance and are reported and accounted for as an evaluation of future business development. The purpose of this study is to analyze and test the effect of Capital Adequacy Ratio and Non- Performing Loans on Stock Prices through Return on Assets. This research is a quantitative research. The population in this study is banking companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2021. Data analysis and hypothesis testing in this study used the Structural Equation Model-Partial Least Square (PLS-SEM). The results of the direct influence hypothesis test using the Smart PLS 3.0 application, show that the Capital Adequacy Ratio has a positive but not significant effect on Return On Assets, Non Performing Loans has a significant negative effect on Return On Assets, Capital Adequacy Ratio has a negative but not significant effect on stock prices, Non Performing Loans has a positive but not significant effect on stock prices, Return On Assets has a negative but not significant effect on stock prices. The results of the indirect influence hypothesis test show that the Capital Adequacy Ratio variable to stock prices through Return On Assets has a negative but not significant effect, Non Performing Loans to stock prices through Return On Assets has a positive but not significant effect.