The Effect of Financial Performance on the Stock Prices of State-Owned Banks Listed on the Indonesia Stock Exchange (2019–2023 Period)

Abstract

This study aims to test and analyze the effect of financial performance measured using financial ratios, namely Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Return on Assets (ROA), and Loan to Deposit Ratio (LDR) on stock prices in state-owned banks listed on the Indonesia Stock Exchange (2019-2023 period). The population in this study is state-owned banks listed on the Indonesia Stock Exchange from 2019-2023, consisting of 4 companies, namely PT. Bank BRI, PT. Bank BNI, PT. Bank Mandiri, and PT. Bank BTN. The data collection method used is a census with panel data regression analysis. The data used is secondary data. The data will be tested with several stages of testing, descriptive statistical tests, normality tests, classical assumption tests, coefficient of determination tests, and f tests with t-test hypothesis testing. The results of the study show that the Capital Adequacy Ratio (CAR) has a positive and insignificant effect on stock prices, Return On Assets (ROA) has a positive and significant effect on stock prices, Non-Performing Loan (NPL) and Loan Deposit Ratio (LDR) have a negative and insignificant effect on stock prices in state-owned banks listed on the Indonesia Stock Exchange.