Examines several things that affect the price of banking stocks: Evidence from Indonesia

Purpose: This study analyzes the effect of return on assets (ROA), net profit margin (NPM), debt-to-equity ratio (DER), and earnings per share (EPS) on the share price of banking companies on the Indonesia Stock Exchange (IDX). Research Design and Methodology: This study uses secondary data from 6 banking companies selected by purposive sampling based on financial reports for 2018–2022. The analysis was conducted using IBM SPSS version 25 to test the relationship between these variables. Findings and Discussion: The analysis shows that EPS has a positive and significant effect on stock prices, while DER shows a negative but insignificant effect. ROA and NPM show a positive but insignificant effect. Implications: This research guides investors to pay more attention to EPS when making investment decisions and encourages companies to improve operational performance to attract investors. Novelty: This research is unique in its particular focus on the banking sector in Indonesia and its integration of fundamental analysis from short-term and long-term perspectives.

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Publication Details

Journal
Advances in Management & Financial Reporting
Published
2024-08-15
DOI
https://doi.org/10.60079/amfr.v2i3.126
Citations
1
Primary Topic
Financial Analysis and Corporate Governance
Type
article
Field-Weighted Citation Impact
0.95
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article

Examines several things that affect the price of banking stocks: Evidence from Indonesia

Yana Ameliana
1 citations
Advances in Management & Financial Reporting
Financial Analysis and Corporate Governance
0.95
article

Examines several things that affect the price of banking stocks: Evidence from Indonesia

Yana Ameliana
article en
1 citations

Abstract

Purpose: This study analyzes the effect of return on assets (ROA), net profit margin (NPM), debt-to-equity ratio (DER), and earnings per share (EPS) on the share price of banking companies on the Indonesia Stock Exchange (IDX). Research Design and Methodology: This study uses secondary data from 6 banking companies selected by purposive sampling based on financial reports for 2018–2022. The analysis was conducted using IBM SPSS version 25 to test the relationship between these variables. Findings and Discussion: The analysis shows that EPS has a positive and significant effect on stock prices, while DER shows a negative but insignificant effect. ROA and NPM show a positive but insignificant effect. Implications: This research guides investors to pay more attention to EPS when making investment decisions and encourages companies to improve operational performance to attract investors. Novelty: This research is unique in its particular focus on the banking sector in Indonesia and its integration of fundamental analysis from short-term and long-term perspectives.

Advances in Management & Financial ReportingVol. 2(3)
Universitas Yapis Papua (ID)
Partnerships for the goals
Openalex Percentile: Top 21%
Financial Analysis and Corporate Governance
0.95
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Examines several things that affect the price of banking stocks: Evidence from Indonesia — Yana Ameliana · Advances in Management & Financial Reporting (2024) | TGRS Research Map | TGRS