THE INFLUENCE OF ROE, EPS, OEOI AND LDR RATIOS TOWARDS STOCK PRICE OF EIGHT BIGGEST BANKS LISTED IN INDONESIA STOCK EXCHANGE FOR PERIOD 2004 TO 2012

Abstract

The purpose of this research is to examine the influence of profitability ratios together and separately with The Stock Price of eight biggest banks listed in Indonesia Stock Exchange based on the Market Capitalization for the period 2004 to 2012. Financial Ratios are the indicators used to determine the company performance. This research used several financial ratios that considered affecting the stock price of the company. The ratios are: Return on Equity (ROE), Earning Per Share (EPS), Operating expenses / operating income (OEOI) and Loan to Deposit Ratio (LDR). Stock price fluctuation would be so hard to predict without any research, so that this research would like to provide the analysis about the financial ratios that may affect the stock price. The result of the research is all ratios (ROE, EPS, OEOI, LDR) simultaneously significantly influenced Stock Price of eight biggest banks listed in Indonesia Stock Exchange based on the Market Capitalization. The other result is all ratios (ROE, EPS, LDR) except OEOI partially influenced Stock Price of eight biggest banks listed in Indonesia Stock Exchange based on the Market Capitalization and the most significant influenced ratio is Earning Per Share (EPS).