The Impact of Return on Asset (ROA), Capital Adequacy Ratio (CAR), Price-Earnings Ratio (PER), and Price-To-Book Value (PBV) on Stock Prices of Banking Companies Listed on the LQ45 Index during 2019- 2023
1Emmi Rossela Br Ginting, 2Herry Sussanto
1Student Faculty of Economic, Gunadarma University, Jakarta, Indonesia
2Lecturer Faculty of Economic, Gunadarma University, Jakarta, Indonesia
https://doi.org/10.47191/jefms/v7-i10-12
ABSTRACT:
This study aims to analyze the influence of Return on Asset (ROA), Capital Adequacy Ratio (CAR), Price Earning Ratio (PER), and Price to Book Value (PBV) on the stock price of banking companies listed on the LQ45 index from 2019 to 2023. This research employed a quantitative method, utilizing secondary data collected from financial reports and stock prices of banking companies included in the LQ45 index, which were listed on the Indonesia Stock Exchange (IDX) and published during the 2019- 2023 period. The data was obtained from the official website of the Indonesia Stock Exchange. The population of this study consisted of 5 banking companies that met the specified criteria. Multiple linear regression analysis, using SPSS software, was employed to analyze the data. The findings revealed that Return on Asset (ROA) had a significant positive influence on the stock price, while Capital Adequacy Ratio (CAR) had a significant negative impact. Price Earnings Ratio (PER) was found to have no significant effect on the stock price, and Price to Book Value (PBV) had a significant positive influence. Furthermore, Return on Asset (ROA), Capital Adequacy Ratio (CAR), Price Earnings Ratio (PER), and Price to Book Value (PBV) jointly had a significant impact on the stock price.
KEYWORDS:
Stock Price, Return on Asset (ROA), Capital Adequacy Ratio (CAR), Price Earning Ratio (PER), dan Price to Book Value (PBV)
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