Jul 2026· Golden Ratio of Data in Summary· Vol 6, pp. 843-866· 1 citation· 62 references
Abstract
This causal study examines the effects of the Capital Adequacy Ratio (CAR), Nonperforming Loan ratio (NPL), Return on Assets (ROA), and Loan-to-Deposit Ratio (LDR) on the stock prices of banking companies listed on the Indonesia Stock Exchange from 2018 to 2022. The sample comprises 200 firm-year financial statements from 40 companies selected through purposive sampling over a five-year period. Data were analyzed using statistical software through classical assumption testing, the simultaneous F-test, partial t-tests, the coefficient of determination, and multiple linear regression. The results show that CAR, NPL, ROA, and LDR jointly have a significant effect on banking stock prices. Partially, NPL has a significant negative effect, indicating that higher nonperforming loans reflect deteriorating asset quality and greater credit risk, which may weaken bank profitability, reduce investor confidence, and depress stock prices. ROA has a significant positive effect, indicating that stronger earnings generated from total assets provide a favorable signal to investors. By contrast, CAR and LDR do not have significant partial effects on stock prices. Nevertheless, both ratios remain important in the broader context of capital resilience, liquidity management, cash flow, and bank sustainability.
Purpose: This study examines the effects of profitability, liquidity, and solvency on the stock prices of banking companies listed on the Indonesia Stock Exchange during 2020–2025. It tests whether Return on Assets (ROA), Loan to Deposit Ratio (LDR), and Capital Adequacy Ratio (CAR) significantly influence banking stock prices.
Research Method: A quantitative associative design with multiple linear regression was employed. Annual financial statements and stock-price data were collected from 31 banks selected through purposive sampling, producing 186 observations after extreme values were removed using the z-score criterion. Stock prices were transformed into natural logarithms, while ROA, LDR, and CAR remained in ratio form. The data were analyzed using SPSS 26.
Results and Discussion: ROA positively and significantly affects stock prices (B = 76.973; p = 0.000), indicating that investors value efficient asset utilization. LDR has no significant effect (B = 0.065; p = 0.847), whereas CAR has a significant negative effect (B = −2.324; p = 0.000), suggesting that excessive capital may indicate inefficient capital utilization. The model explains 37.9% of stock-price variation.
Implications: Bank management should strengthen profitability and utilize capital efficiently. Future studies should apply robust panel-data methods and include macroeconomic and bank-specific variables.
Originality: This study provides post-pandemic evidence that banking solvency may be interpreted negatively when capital accumulation is not accompanied by productive expansion.
Dinda Ayu Sabrina, Dian Prawitasari, Amalia Nur Chasanah et al.· Advances· 0 citations
Purpose: This study aims to investigate the influence of dividend policy, earnings volatility, and asset growth on the stock prices and returns of banking companies listed on the Indonesia Stock Exchange (IDX).
Research Method: This study employs an associative quantitative approach. Secondary data were obtained from the financial statements and annual reports of banking institutions for the years 2019 to 2020. Purposive sampling was used to select companies based on criteria regarding the issuance of financial statements and the distribution of dividends. Descriptive statistics, classical assumption tests, and hypothesis testing were conducted using multiple linear regression analysis via SPSS version 31.
Results and Discussion: The results indicate that asset expansion, dividend strategy, and earnings fluctuations do not have a partial impact on stock prices or stock returns. Furthermore, these three variables do not influence stock price volatility (Sig. 0.848) or stock returns (Sig. 0.79).
Implications: The findings suggest that external factors—including market sentiment and macroeconomic conditions—played a more significant role in influencing stock price fluctuations and investment returns for Indonesian banking companies during the study period.
Originality: This study contributes to the literature by analyzing the impact of earnings volatility, dividend policy, and asset growth on stock price volatility and stock returns among banking companies on the Indonesia Stock Exchange during the 2021–2025 period.
Keywords: Earnings Volatility, Dividend Policy, Asset Growth, Stock Price Volatility, Stock Return, Indonesian Banking
Unknown authors· Advances in Economics &...· 0 citations
This study aims to examine the effects of Bank Size, Return on Equity (ROE), and Capital Adequacy Ratio (CAR) on Non-Performing Loans (NPL) in conventional banking companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. NPL is one of the key indicators used to assess loan quality and the level of credit risk faced by banks. A high NPL ratio may weaken banking stability, reduce profitability, and undermine public confidence in the banking sector. Therefore, identifying the determinants of NPL is essential for maintaining sound banking performance and financial stability. The independent variables employed in this study are Bank Size, Return on Equity (ROE), and Capital Adequacy Ratio (CAR), while NPL serves as the dependent variable. This research adopts a quantitative approach using secondary data obtained from the annual financial statements of conventional banks for the period 2021–2025. The data were measured using a ratio scale, and the sample was selected through a purposive sampling technique. A total of 42 conventional banking companies listed on the Indonesia Stock Exchange were included in the study. Panel data regression analysis was used EViews 13 software. The most appropriate estimation model was determined through the Chow test, Hausman test, and Lagrange Multiplier test. The findings reveal that Bank Size, ROE, and CAR also significantly affects NPL. These results suggest that bank size, Return on Equity (ROE), and and Capital Adequacy Ratio (CAR) are important factors influencing credit quality and should be carefully managed to control banking credit risk.
Risky Fitriany, A. Fadjar· Media Ethics: Human Ecology...· 0 citations
The Indonesian textile and garment sector has experienced persistent declines in stock prices, reflecting weakened corporate fundamentals and increasing risks of financial distress. Although previous studies have examined the relationships among financial ratios, financial distress, and stock prices, limited evidence explains the mediating role of financial distress in linking corporate financial performance to market valuation. Grounded in signaling theory, this study investigates the effects of Net Profit Margin (NPM), Total Asset Turnover (TATO), and Current Ratio (CR) on stock prices through financial distress measured using the Altman Z-Score. A quantitative explanatory approach was employed using secondary data from 14 textile and garment companies listed on the Indonesia Stock Exchange during the 2021–2024 period, yielding 56 firm-year observations selected through purposive sampling. The data were analyzed using multiple linear regression, path analysis, and the Sobel test. The results indicate that NPM, TATO, and CR simultaneously affect financial distress, while only CR demonstrates a significant positive partial effect, indicating that stronger liquidity contributes to improved financial health. Furthermore, only financial distress significantly influences stock prices, whereas NPM, TATO, and CR do not have direct significant effects. The Sobel test result (Z = 2.624; p = 0.0087) confirms that financial distress fully mediates the relationship between CR and stock prices. These findings support signaling theory by demonstrating that investors respond more strongly to firms’ overall financial health than to individual liquidity ratios. The findings provide practical insights for managers seeking to strengthen financial stability and enhance investor confidence.
Rodiansyah Rodiansyah, Yana Hendayana· Quarterly Journal of the Ope...· 0 citations
This study aims to examine the effect of Return on Assets (ROA) and Earnings per Share (EPS) on stock prices of banking companies listed on the Indonesia Stock Exchange during 2018–2024. A quantitative approach with a descriptive-verificative method was employed using secondary data from annual reports, financial statements, and historical stock prices. The sample consisted of 10 banking companies selected through purposive sampling from a population of 47 companies, resulting in 70 company-year observations. The data were analyzed using panel data regression with EViews 12, with the Fixed Effects Model (FEM) selected as the appropriate regression model. Hypotheses were tested using the t-test, F-test, and coefficient of determination (R²) at a 5% significance level. The results indicate that ROA has a positive and significant effect on stock prices, whereas EPS has a negative and significant effect. Simultaneously, ROA and EPS have a significant effect on stock prices. The R-squared value of 0.609592 indicates that ROA and EPS jointly explain 60.9592% of the variation in stock prices, while the remaining 39.0408% is attributable to other factors outside the research model. These findings provide empirical evidence that financial performance information, particularly asset profitability and earnings per share, is relevant to stock price valuation in the banking sector and supports the application of Signaling Theory in explaining investors’ responses to financial information.
This study examines the effects of capital structure, liquidity, asset quality, and Environmental, Social, and Governance (ESG) scores on the profitability of banking companies listed on the Indonesia Stock Exchange during 2021–2025. A quantitative causal-explanatory design was employed using secondary data from annual reports and ESG disclosures. Purposive sampling selected 10 banks from a population of 48 companies, producing 50 firm-year observations. Profitability was measured by Return on Assets, while capital structure, liquidity, and asset quality were represented by DAR, LDR, and NPL, respectively. Data were analyzed using descriptive statistics, classical assumption tests, multiple linear regression, partial t-tests, an F-test, and the coefficient of determination with SPSS 26. The results show that capital structure, liquidity, and ESG scores do not significantly affect profitability, whereas asset quality has a positive and significant effect. Simultaneously, the four independent variables significantly influence profitability, with an R-square of 0.216. These findings indicate that asset quality remains the most important internal determinant of profitability, while other financial and sustainability factors contribute collectively to banking performance and should therefore be managed within an integrated strategic framework.
Unknown authors· Journal of Management, Entre...· 0 citations
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