Bank Stock Research Articles

The Influence of Profitability, Dividend Policy and Institutional Ownership on Banking Stock PricesListed on the Indonesian Stock Exchange

This research aims to analyze the influence of profitability, dividend policy and institutional ownership on Stock Pricesboth simultaneously and partially. The sample used in this research was 41 banks listed on the Indonesia Stock Exchange (BEI) during the period 2020 to 2022, resulting in a total of 123 observation data. The analytical method used is multiple regression analysis. The results of the analysis show that simultaneously, profitability, dividend policy and institutional ownership have a significant influence on Stock Prices. However, partially, profitability does not have a significant influence on Stock Prices. On the other hand, dividend policy was found to have a positive and significant influence on Stock Prices, indicating that a consistent and profitable dividend policy can increase investor interest and Stock Prices. Institutional ownership also has a significant effect on Stock Prices, indicating that ownership by financial institutions can give the market more confidence regarding the company's prospects. This research provides a better understanding of the factors that influence Stock Pricesin the banking sector in Indonesia and can be a reference for investors in making better investment decisions.

A multi-dimensional connectedness and spillover between green bond and Islamic banking equity: Evidence from country level analysis

The paper delves into the multidimensional connections and spillover between green bonds and Islamic banking stocks from eleven countries. Throughout this study, we further explored optimal hedging mechanisms, as well as optimal portfolio weighting mechanisms, with Islamic banking equities and green bonds. Our empirical results show that there is a moderate level of interrelation between green bonds and Islamic banking indices, with low connectedness throughout the long-term and medium-term. The time-varying spillover effects become higher, albeit low, in the early periods of both SOR and COVID-19 at short-, medium-, and long-term scales, which suggests some diversification and hedging benefits from holding portfolios of the two assets. Country-based Islamic bank markets are not largely affected by disturbances that emerged in some other markets in the short-, medium-, or long-term timescales. The Chinese green bond market has a tendency to be the greatest net risk transceiver for both the green bond and Islamic bank markets over the medium and long term, whilst the global green bond index has been the leading net risk transmitter during the short term. Only the UAE and Saudi Islamic Banking indices act as net risk transmitters in the short and medium term. The empirical findings further suggest that global risk variables are dependable drivers of the extent of spillover between Islamic banking indices and green bonds. Our research shows that owning Islamic bank stocks during COVID-19 and SOR minimizes the significant risk linked to holding green bonds, which has profound implications for risk management and portfolio creation. Thus, our study offers important implications for economic agents.

Improving employee job satisfaction: The case of commercial banks strategy

The objective is to find out the factors that affect the job satisfaction of employees at commercial banks in the Mekong Delta by collecting preliminary data from 260 employees at six commercial banks in the Mekong Delta: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Asia Commercial Joint Stock Bank (ACB), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Vietnam Bank for Agriculture and Rural Development (Agribank) according to the random sampling method. The authors inherited the research of Smith et al. (1969), Luddy (2005) and Kim Dung (2005) at the same time, applying multivariate regression models for this study. Research results have found five factors that affect job satisfaction: working conditions, salary and benefits, leadership concerns, relationships with colleagues and training and advancement opportunities. From the research results, the authors have proposed solutions to further improve the job satisfaction of employees at commercial banks in the Mekong Delta, thereby contributing to improving the business efficiency of the Mekong Delta commercial bank system in the coming time.

Stock Returns and Volatility: A Study of the Nepal Stock Market

The study shows the relationship between volatility and stock return for the NEPSE Index and NEPSE banking stocks. In this study, the NEPSE index and banking stock index were used to compare the risk-return trade-offs between the NEPSE index with the ADBL Bank and NBL Bank in Nepal. Secondary data are the major sources of information and the data were obtained from the NEPSE website over 5-years period, from 2018 to 2022. In this study, beta coefficients were calculated, indicating that both banks are perceived to have lower systematic risk than the overall stock market. This suggests that these banks are relatively less exposed to market volatility. The study will be useful for investors evaluating the safety of government bank stocks as an investment. Furthermore, this research is anticipated to offer valuable perspectives to investors assessing the security and appeal of government bank stocks as a potential investment. It not only illuminates the risk-return characteristics of these stocks but also acts as an informative guide for investors seeking to make well-informed choices in the Nepalese stock market.

Examining the Effect of Bank Health Level towards Stock Return of Commercial Banks in Three-Selected ASEAN Countries

Today, various main factors, including the banking sector, support a country's economy. The growth and performance of banks in a country are factors in measuring the country's economic growth. The increasing number of banking stocks traded in ASEAN countries proves banking development. However, since middle-to-low-income countries dominate ASEAN, it opens up a greater risk to the volatility of bank stock returns because of economic turmoil. Non-performing loans (NPL), Good Corporate Governance (GCG), Return on Assets (ROA), and Capital Adequacy Ratio (CAR) are found to influence bank stock return in some studies, but other similar studies show the opposite. Therefore, this study uses 28 banks in ASEAN countries as a sample, consisting of 10 Indonesian banks, 8 Malaysian banks, and 10 Thailand banks. Data analysis uses regression analysis with moderated regression analysis (MRA) and discrimination tests. The result shows NPL and GCG have no significant effect on bank stock return, ROA has a positive and significant effect, and CAR has a negative and significant effect. Price to Book Value (PBV) has a positive and significant effect on bank stock return but can only moderate ROA on stock return. The discrimination test shows that ASEAN countries' NPL, GCG, ROA, and CAR differ significantly. Therefore, banks in ASEAN ought to maintain their health through these factors to maximize their stock return.

Analysis and Prediction of the China Securities Bank Index Based on the ARIMA Model

Banking is crucial for a country's financial system. Also, the performance of banks can indicate the confidence of investors in the financial market and the overall situation of the country's economy to a certain extent. As the CSBI index reflects the overall performance of Chinese banking stocks, predicting the relevant price movements can predict how the banking industry will move over time to come and help investors make investment decisions. Under this circumstance, the paper selects the CSBI closing price from January 2th, 2019 to August 11th, 2023 and build the ARIMA (0,1,0) model to make predictions based on these data. The conclusion shows that the ARIMA model has good forecasting abilities in the short term, but its timeliness is relatively poor in the long term. Finally, on the basis of these analyses, the paper summarizes the development trend of the industry in the short term, lists the reasons for the inaccuracy of the long-term forecast from different aspects and provides suggestions for investors.

Bid-Ask Spread, Market Value, and Return Risk on Stock Holding Period in the Banking Sector Listed on the Indonesian Stock Exchange (BEI) from 2018 to 2022

This research is of high relevance as it provides new insights in the context of shareholding duration in the banking sector on the Indonesia Stock Exchange (IDX) over the period 2018-2022. Factors such as bid-ask spread, market value, and return risk have been analyzed to understand their influence on the stock holding period. The implications of the research findings can be used by practitioners, regulators, and academics in finance to develop more effective investment policies and risk management strategies. The results showed that simultaneously, bid-ask spread, market value, and return risk affect the holding period of banking stocks on the IDX during the period February 2018-January 2022. Partially, bid-ask spread and market value have a positive but insignificant effect on the holding period. Conversely, return risk has a negative and significant effect on the holding period of banking stocks. These findings contribute to the development of financial theory and industry practice, paving the way for further research. Therefore, this study has important value in the context of investment decision-making, risk management, and understanding investor behavior in the banking sector.

Optimizing the Hospital Blood Bank Stock in Korea: A Comparative Analysis of the Uniform 5-Day Stock Index and a Novel Blood Stock Index.

Maintaining optimal blood inventory levels in hospitals is important to prevent blood shortage and wastage. We aimed to provide an efficient blood inventory management strategy for hospital blood banks nation-wide by comparing the current use of 5-day issuable stock (IS) with Lim's IS as a novel target IS. The average and CV of daily usage (DU) were calculated from information entered into Korea's Blood Management System by 194 participating hospitals in 2019 and 2020. Using these data, Lim's IS was calculated by determining the simulated annual average blood shortage day nearest to 1 for each blood group in each hospital. The 5-day IS (5IS) was estimated by multiplying the average DU in 2018 by five to count the shortage days in 2019. The average DU (0.3-231.3 units) and corresponding CV (0.33-7.14) in the participating hospitals were inversely proportional (r=-0.699 to -0.695). The hypothetical averages of 5IS and Lim's IS were 27.0±41.2 and 24.7±20.8, respectively (P=0.006). The shortage days for 5IS and Lim's IS were 8.9±22.7 and 1.0±1.9, respectively (P<0.001). While 5IS was unacceptable for universal application, Lim's IS remained near one shortage day and is considered more efficient than 5IS. Hospitals should implement indicators that consider DU and its variations. This is the first study to introduce Lim's IS as an indicator of optimal blood inventory, and the data are expected to provide guidance for effective blood inventory management nationwide, particularly during blood shortages.

DIGITAL BANKING STOCK PERFORMANCE: THE IMPACT OF COVID-19

The Covid-19 pandemic has catalyzed a dramatic change in entire banking operations. However, not a few banks have transformed into digital banks to continue providing top services to customers. This study aims to identify Indonesia's banking market reaction to the Covid-19 pandemic especially for digital banking industries. The market reaction is seen from the movement in stock prices and stock trading volumes. The research was conducted using qualitative research methods. The sample is PT Bank Jago Tbk. (ARTO) with observation period from January 2020 to December 2021. The results of this study indicate that the market reacts to information entering the market quickly. The speed of information entering the market also accelerates market reactions that occur. The market reacts negatively to negative events and reacts positively to positive events. In addition to confirming the efficient market theory, the results of this study also confirm the signal theory. The president's announcement of the first case of Covid-19 in Indonesia is a bad signal for investors regarding cash flow and the company's future. This study also found that stock prices and volume did not only react to Covid- 19 conditions but also corporate actions. Several corporate actions that have an impact on price movements and volume of ARTO stocks are the issuance of rights issues, changes in the company's business processes, and the entry of the new investors. Based on the results of this study, investors in the stock market can pay attention to certain events that can provide buy or sell signals.

Analysis of the Investment Value of China's Banking Stocks

In order to thoroughly assess the valuation levels of the stocks of the three banks from three perspectives, this article gathers the financial information and market price information of three Chinese state-owned commercial banks. It then analyzes the stocks of the Chinese banking sector using a variety of indicators, including the price-earnings ratio and the price-to-book ratio. In the recent investment performance, it discusses the changing trend and fluctuation range of its investment value. As the core component of the economic system, the banking industry plays a vital role in the modern financial system. As an intermediary of funds, the banking industry not only facilitates the flow of funds from depositors to investors, enterprises, and individuals, but also plays a role in capital allocation, risk diversification, and credit creation. A stable banking system helps maintain financial stability, promote investment, and create jobs. Therefore, analyzing the value of banking stocks from different angles can provide different types of investors with insight into the financial situation and help them make wise investment decisions.

Value at Risk Calculation of Digital Bank Stocks Portfolio in Indonesia

&lt;p&gt;Nowadays, stock investment has been increasingly growing in society. In investing activities, there are risks that may be experienced by investors. However, sometimes many investors do not realize how much risk that they might suffer in the future. One way that can be done to measure this risk is to calculate the Value at Risk (VaR). This study aims to calculate the VaR value of digital bank stock portfolio in Indonesia. The calculation of VaR will be done using two methods, include the Historical Simulation and Monte Carlo Simulation method. From the calculation, VaR with Historical Simulation and Monte Carlo sequentially generate results of IDR 6,006,718 and IDR 10,797,904 for 99% confidence level, IDR 4,135,857 and IDR 5,376,949 for 95% confidence level, and IDR 3,219,885 and IDR 3,417,553 for 90% confidence level. Based on the results, it is found that VaR result is directly proportional to the confidence level used. Through the calculation results, it also found that VaR value with the Monte Carlo Simulation method are greater than those with the Historical Simulation method.&lt;/p&gt;

Tác động của thanh khoản đến biến động giá cổ phiếu: Nghiên cứu trường hợp các ngân hàng thương mại cổ phần Việt Nam

Stock price is considered the top priority factor in attracting the attention of investors when investing in the stock market. In developed markets, changes in liquidity can help predict future changes in price volatility. The paper was conducted with the aim of analyzing the impact of banking liquidity on the stock price volatility of commercial banks listed on the Vietnam stock market. With a data sample of 27 commercial banks in the period from 2012 to 2022. By regressing panel data through system- GMM estimation (SGMM), the research results show that banking liquidity (LIQ) and bank size (SIZE) have a negative impact on banking stock price volatility (SPV). Meanwhile, changes in the deposit interest rate (IR) and changes in the exchange rate (EXR) have a positive impact on the volatility of banking stock prices (SPV). Besides, the study does not have enough evidence to prove that allowance for credit losses (AFCL), the price-to-earnings ratio (P/E) and the economic growth (GDP) have an impact on banking stock price volatility (SPV).

Shaping Market Perceptions: An Investigation into Macedonian Bank Stock Prices and their Drivers

This research paper examines the effects of return on assets (ROA), earnings per share (EPS), and audit opinion as a control variable, on the stock prices of banks in North Macedonia. The primary aim of this research endeavor is to scrutinize the influence exerted by these financial metrics on the stock prices pertaining to banking institutions within the region of North Macedonia, while also endeavoring to ascertain the extent of said influence. To analyze this relationship, a linear multiple regression model is employed. Data were collected from the audited financial statements and annual reports of all 12 banks in North Macedonia over a ten-year period from 2012 to 2021. The research findings illustrate a notable statistical influence of audit opinions and earnings per share (EPS) on the stock valuations of banks within the North Macedonian context. To elucidate, the positive coefficient associated with the audit opinion variable signifies its discernible sway on stock prices. Likewise, the positive coefficient linked with the EPS variable highlights that augmented earnings per share correlate with an upswing in stock prices. However, it is important to note that when audit opinion is excluded from the model, the results change, and ROA shows a statistically significant impact on stock prices. This suggests that the inclusion of audit opinion as a control variable affects the relationship between ROA and stock prices. These findings imply that investors in the banking sector in North Macedonia consider audit opinion and EPS as crucial indicators of a bank's financial health, influencing their investment decisions. Maintaining a positive audit opinion and increasing EPS are important factors for boosting stock prices, which is valuable information for bank managers and investors. The recent changes in the audit report format, including the reporting of Key Audit Matters (KAM), have not yet been implemented in the domestic audit practice. As a result, auditors do not report on KAM, which may have influenced the research results differently. Also, the small sample size can be perceived as a limitation of the research. With only 12 banks in the Macedonian banking sector, the generalizability of the findings may be restricted. Future research could consider expanding the sample to enhance the representativeness of the study.

Connectedness of Vietnamese bank stock returns under the impact of the COVID-19 pandemic

The COVID-19 pandemic highlighted the sensitivity of connectedness among bank stock returns in Vietnam. The aim of this study is to examine the strength of this connectedness along with the effect of government lockdown policy and COVID-19 cases on the total connectedness index (TCI) of 16 listed banks on Vietnamese stock exchanges. They are assessed using the database of FiinPro on the banking sector between January 2020 and July 2022, Vietnam Center for Disease Control and Prevention (CDC), and The World Health Organization (WHO) on the COVID-19 pandemic, employing a time-varying-parameter vector autoregressive (TVP-VAR) connectedness framework and the conditional quantile regression model. The results show that at the firm level, there is strong interdependence among bank stock returns with the average TCI being as high as 90.66%. It is also revealed that medium and large-sized banks are receivers of shock, while smaller banks are transmitters. As far as the impact on TCI is concerned, the widespread of the pandemic with the increasing number of COVID-19 cases is significantly negative, whereas the tightening of lockdown is significantly positive. Besides, the degree of the impact varies according to the 95th, 75th, 50th and 25th levels of conditional quantile regression. Based on the study’s findings, individual investors are recommended to thoroughly analyze the connectedness of banks before making investment decisions, while bank regulators should strengthen controls on credit relationships with small banks. Regarding policy makers, it is proposed to apply flexible restrictions and short-term lockdown depending on the actual outbreak of the pandemic. AcknowledgmentThe paper was conducted within the scope of Project QG21.48 of Vietnam National University.

Analisis Faktor-Faktor yang Mempengaruhi Profitabilitas pada Bank Umum yang Terdaftar di Bursa Efek Indonesia

This research aims to determine the influence of Non-Performing Loans, Capital Adequacy Ratio, Loan to Deposit Ratio, and Operational Costs on Operational Income on the Profitability of Commercial Banks listed on the Indonesia Stock Exchange. The data used is quantitative and qualitative data. The research population is several commercial banking companies listed on the Indonesia Stock Exchange in 2018 - 2022, both with status as Government Banks, National Private Banks and Joint Stock Banks operating in Indonesia. The samples taken were 7 commercial banks listed in BEI. The analytical method used is data analysis using statistical tests, classical assumptions and multiple linear regression using the Statistical Product and Service Solution (SPSS) 21 software program. The results of this study show that: (1) NPL has a negative and significant effect on ROA, (2) ) Capital Adequacy Ratio (CAR) has a positive and not significant effect on ROA, (3) Loan to Deposit Ratio (LDR) has a positive but not significant effect on Return On Assets (ROA), (4) BOPO shows a negative and significant effect on ROA, (5) There are differences in the influence of NPL, CAR, LDR and BOPO on profitability (ROA) in commercial banks listed on the Indonesia Stock Exchange.

Investor behavior around targeted liquidity announcements

We exploit announcements related to targeted longer-term financing operations (TLTROs) as exogenous shocks in investor perceptions to test recent theories on bank funding liquidity (Ahnert et al., 2019; Liu, 2015). We find that banks with high derivative holdings and more exposed to sovereign credit risk respond better to the announcements, consistent with the view that lower funding costs benefit banks with higher asset encumbrance and located in more vulnerable Eurozone countries. The TLTRO announcements also elicit reductions in short positions on bank stocks relative to stocks of non-financial corporations without impairing their market liquidity. Robustness tests rule out that our results are driven by confounding events and anticipation effects. Placebo tests confirm that the TLTRO announcements are driving the estimated price reactions and changes in short positions.

Breaking the Stereotype: How Corporate Financialization Can Boost R&amp;D Investment

As Enterprise Financialization refers to the process in which enterprises obtain funds through financing channels to support their business and development activities. This financing channel can include bank loans, bond issuance, stock issuance and other forms. And the purpose of Enterprise Financialization is to improve the efficiency of capital utilization. However, we would test the hypothesis in our research is that the extent to which corporate Financialization increases R&amp;D spending may depend on a variety of factors. And we figure that a rise in R&amp;D spending results from a 1% increase in finalization. This finding confirms the theory that finalization and R&amp;D positively correlated.

Enhancing predictive modeling for Indian banking stock trends: A fusion of BERT and attention-based BiLSTM approach

In the field of finance, deep learning techniques have been extensively researched for predicting stock prices. In this research, we propose a novel approach for predicting stock price movements using a combination of reviews and historical price data for SBI and HDFC stocks. As market volatility is influenced by numerous factors, it is crucial to consider it while predicting stock prices. To capture the interactions between the price and text data effectively, we create a fusion mix and utilize a hybrid information mixing module, designed using BERT and BiLSTM, to extract the multimodal interactions between the time series and semantic features. The proposed model, the hybrid information mixing module, is based on a multilayer perceptron and achieves high accuracy in predicting price fluctuations in highly volatile stock markets. Future research can extend this approach to include additional data sources and explore other deep learning techniques for better performance.

Factors That Influence Stock Prices In The Financial Sector On The Indonesian Stock Exchange

An important element that investors pay attention to before investing is observing the company's stock price. Banking is an industry that plays an important role in contributing to the Indonesian economy. The aim is to determine the correlation of liquidity, solvency, firm size, exchange rates, credit risk and capital with stock prices in banking partially and simultaneously. The independent factors in this research are liquidity which is proxied by the current ratio, solvency is using DER, company size is using the natural logarithm of total assets, the exchange rate is proxied by the middle rate, credit risk is proxied by NPL and capital is proxied by CAR. The dependent factor in this research is the stock price. Research samples were obtained from financial reports listed on the Indonesia Stock Exchange. This research uses quantitative methods, the analysis technique used is descriptive statistics, while the research hypothesis is tested using multiple linear regression analysis with statistical tools. The determination of the sample was carried out using a purposive sampling method in banking. The results of this research show that simultaneously liquidity, solvency, company size, credit risk, exchange rates, and capital can influence bank stock prices. Partially, stock prices are positively correlated with firm size. However, stock prices are still negatively correlated with credit risk as a proxy for NPL. While stock prices have no correlation with liquidity, solvency, exchange rate and capital.

Public attention, sentiment and the default of Silicon Valley Bank

We assess the interplay between public attention and trading of the Silicon Valley Bank (SVB) stock before its default on March 10, 2023. Based on intra-day data in 15-min intervals, we estimate SVB market excess returns and match these with intra-day measures of investor attention based on the relative number of tweets and Google searches. Wavelet analysis reveals bilateral lead–lag patterns between both series and demonstrates that a higher level of attention led to a significant decrease in SVB returns. Thereby, the results provide evidence that Twitter sentiment and media attention ultimately fueled and accelerated the crash dynamics of Silicon Valley Bank. Economically, Twitter provides information at lower costs and higher effectiveness than newspapers and allows direct communication without potential distortions from media bias or timing lags in reporting. Hence, individuals can coordinate and communicate their run beliefs at a much faster pace, emphasizing the importance for financial stability.