Abstract
This study aims to determine which of the loan to deposit ratio, return on assets and capital adequacy ratio that has a dominant effect on stock prices in the banking industry in Indonesia. This study was conducted in the period 2011 to 2017. The population was all banks listed on the Indonesia Effect Exchange and carried out a self-assessment of GCG in accordance with the instructions of the central bank, Bank Indonesia. The amount of time series data observed was 112 units of analysis. The uniqueness of this research is conducting research on uncertain banking conditions, especially predicting the value of the company and the stock price. The results of the study are certainly beneficial for investors. Data analysis techniques used multiple linear regression. The results of the study prove that the Loan to Deposit Ratio (LDR) does not have a significant effect on the stock prices, Good Corporate Governance (GCG) has no significant effect on stock prices, Return on Assets (ROA) has a dominant influence significantly positive on stock prices and Capital Adequacy Ratio (CAR) have a significant positive effect on the stock prices. Keywords :stock price, loan to deposit ratio, good corporate governance, return on assets, capital adequacy ratio DOI : 10.7176/RJFA/10-24-01 Publication date: December 31 st 2019
Highlights
Banking companies are one of the industries that participate in the capital market
According to data sources on the 2017 IDX Fact Book, the total capitalization of the Indonesian capital market in 2016 was Rp 5,753,613 billion, of which Rp 1,339,854 billion or 23.29% came from the banking sub-sector, this figure shows that the banking sector plays an important role in the capital market compared to other sectors
Based on differences in research results and conditions in the banking sector fluctuations, the objectives of this study is analyzing the effect of Loan to Deposit Ratio (LDR), Good Corporate Governance (GCG), Return On Assets (ROA), and Capital Adequacy Ratio (CAR) on the price of shares of banking companies listed on the Indonesia Stock Exchange in the period 2011 - 2017
Summary
Banking companies are one of the industries that participate in the capital market. Banking stocks are one of the stocks that are in great demand by investors. According to data sources on the 2017 IDX Fact Book, the total capitalization of the Indonesian capital market in 2016 was Rp 5,753,613 billion, of which Rp 1,339,854 billion or 23.29% came from the banking sub-sector, this figure shows that the banking sector plays an important role in the capital market compared to other sectors. The stock price can be a guideline for the excitement and sluggishness of capital market activities. According to Riyadi (2014), the valuation of a bank, in general, is seen in the banking stock price itself, as well as a benchmark for assessing the success of the company's management
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