THE INFLUENCE OF FINANCIAL RATIOS AND MACROECONOMIC FACTORS TOWARD STOCK PRICES OF BANK CATEGORY KBMI 3 & 4

Abstract

This study aims to investigate the influence of financial ratio and macroeconomics factors toward stock price of bank category KBMI 3 & 4. This research used quantitative approach. There are seven independent variables used within this study, which is BOPO, LDR, NPL, CAR, Inflation Rate, Exchange Rate USD/IDR and BI Rate. Through purposive sampling, this research got 312 observations from 13 companies using quarterly data from 2017 – 2022. All variables are examined by descriptive analysis, classical assumption test, multiple linear regression and hypotheses testing. The outcome of this study reveals that partially, BOPO, NPL, Inflation Rate and Exchange Rate have a negative significant influence toward stock price, while CAR and BI rate have a positive significant influence toward the stock price. In addition, LDR partially have positive but not significant effect toward dependent variable. Simultaneously, all independent variables exert significant influence toward the dependent variable, with the value of coefficient determination 27.69%.