THE DETERMINANT OF BANKING STOCK PRICE: ANALYZING EXCHANGE RATE AND FINANCIAL PERFOMANCE OF BANKS IN INDONESIA (2013- 2019)

Abstract

This study aims to analyze the factors that are affecting banking stock price in Indonesia from 2013 to 2019. This study used data from the annual publication report of the Indonesian Financial Services Authority with ten banks that has the biggest assets in Indonesia in 2021 as research samples. The method used is a quantitative approach. This study consists of six independent variables represented by Non-Performing Loan, Debt Equity Ratio, Price Earnings Ratio, Earnings Per Share, Return On Equity, and Exchange Rate Rupiah-Dollar, the dependent variable is represented by Stock Prices. The technique used for multiple linear regression on panel data is the Fixed Effect Model. The result of this study Partially variable DER has a negative and significant effect on banking stock prices, and ER has a positive and significant effect on banking stock prices, while NPL, PER, ROE, and exchange rate has insignificant effect towards banking stock prices. Simultaneously the independent variables NPL, DER, PER, EPS, ROE, and the exchange rate have an influence on the movement of banking stock prices in Indonesia for the period 2013 - 2019. The variable that has the most significant effect on the stock price of banking companies listed on Indonesia Stock Exchange period during 2013 - 2019 is exchange rate.