THE EFFECT OF FINANCIAL RATIOS AND INFLATION TO THE STOCK PRICE OF STATE OWNED BANKS LISTED AT IDX (PERIOD 2009-2017)

Abstract

This research aims to analyze the influence of financial ratios and inflation toward the stock price of state owned banks in Indonesia. The sample in this research are the state owned banks listed on the Indonesia Stock Exchange (IDX) in 2009-2017 which were selected based on purposive sampling method. The sample are PT. Bank Mandiri Tbk, PT. Bank Negara Indonesia Tbk, PT. Bank Rakyat Indonesia Tbk, and PT. Bank Tabungan Negara Tbk. This research uses secondary data collected from various eligible sources with annual period. The data are in the form of Capital Adequacy Ratio, Return on Equity, Operating Expense Ratio, Loan to Deposit Ratio, Earning per Share, Non-Performing Loan, and Inflation as the independent variables obtained from the financial statements published by the company that become the object of research. Meanwhile, the dependent variable is the stock price of state owned banks listed at IDX. The data is analyzed by using multiple regression analysis. The result shows that Capital Adequacy Ratio and Earnings per Share have significant positive influence to the stock price. Then, Return on Equity and Non-Performing Loan have negative significant influence. Meanwhile the remaining variables has insignificant influence to the stock price of state owned banks listed at IDX.