Influence Capital Adequacy Ratio and Loan to Deposit Ratio to The Company's Stock Price Bankings Listed On BEI

Thezar Fiqih Hidayat Hasibuan, Riza Fanny Meutia

doi:10.51178/jecs.v3i2.313

Abstract

    This study aims to examine the effect of Capital Adequacy Ratio (CAR), and Loan to Deposit Ratio (LDR) to the Share Price. The object of this research is 44 banking companies listed on the Indonesia Stock Exchange from 2014-2018. Samples were selected using the methodpurposive sampling namely 25 companies. The analytical method used in this research is multiple linear regression analysis. The results of this study indicate that the variableCapital Adequacy Ratio (CAR) and Loan to Deposit Ratio (LDR) does not have a direct effect on the Stock Price variable   

Highlights

At this time, more and more people and companies are investing their funds in securities
Based on the results of testing the coefficient of determination, the value of is obtained Adjusted R Squareis 0.516 or 51.6%. These results indicate that the influence of the Capital Adequacy Ratio (CAR) and Loan to Deposit Ratio (LDR) variables on stock prices is 51.6% while 48.4% is the influence of research variables outside of this study
This study is in line with research from Murni (2016) which found that the CAR variable does not have a significant effect on stock prices

Summary

Introduction

More and more people and companies are investing their funds in securities. Investments in stocks are divided into short-term investments and long-term investments. Stock investments in the short term are usually intended for immediate resale. Investments in shares in the long term are usually intended to have voting rights in other companies or to control other companies. Fundamental analysis can be used which analyzes the financial and economic conditions of the companies that issue shares. Fundamental analysis relates to the company's performance assessment of the effectiveness and efficiency of the company in achieving its goals. To analyze the company's performance can be used financial ratio analysis. Several international financial institutions have even revised their economic growth targets.

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Conclusion