Abstract
The purpose of this work is to analyze the impact of financial indicators on the stock prices of bank subsidiaries in 2019–2021. This study focuses on five ratios which are Loan to Deposit (LDR), Return on Assets (ROA). , price/earnings ratio (PER), debt/equity ratio (DER) and non-performing loans (NPL). The research method is panel regression analysis, which uses secondary information obtained from the financial statements of listed banking companies. The research sample consists of several banking companies of a certain period. The results of this study show that LDR, ROA, PER, DER and NPL significantly affect the stock prices of bank subsidiaries. LDR, ROA and PER have a positive effect on stock prices, while DER and NPL have a negative effect. This indicates that investors tend to pay attention to these financial ratios when evaluating a company and setting stock prices. This study helps to understand the factors affecting stock price of banking companies. The results of this study can be used as benchmarks for investors, corporate management and regulators in making investment decisions and policies related to banking.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.