PENGARUH PERKEMBANGAN DAN KINERJA BANK DIGITAL TERHADAP KEPUTUSAN BERINVESTASI PADA SAHAM BANK DIGITAL

Abstract

The objective of this research is to identify the partial effects of digital banks’ growth and performance, which are proxied by Return on Assets (ROA), market capitalization, firm age, and firm issue, on the decision to invest in digital banks’ stock. This study uses the quantitative approach to identify the effects of the independent variables, i.e., Return on Asset (X1), market capitalization (X2), firm age (X3), and firm issue (X4), on the dependent variable, i.e., the decision to investin digital banks’ stock (Y). the research samples are five digital bank companies listed in the Indonesia Stock Exchange during the 2017-2021 period. the hypothesis testing was conducted using multiple linear regression analysis on the panel data. This research finds that Return on Assets (ROA), market capitalization, and firm issue do not influence the decision to invest in digital banks’ stock and that firm age positively and significantly affects the said decision. This study suggests the digital banks to enhance the effectiveness and efficiency of their managerial processes in order to increase the returns from investments made in them, which in the end can increase their performance.