THE ANALYSIS OF FINANCIAL RATIO INFLUENCE ON STOCK PRICE (STUDY CASE THREE SIGNIFICANT INCOME GROWTH BANKS LISTED ON INDONESIA STOCK EXCHANGE PERIOD 2009 – 2012)

Abstract

The research objectives is to find the influence of financial ratio towards stock price. The independents variable represent the financial ratio used in this research are Return on Asset (ROA), Earnings per S hare (EPS), Loan to Deposit Ratio (LDR), and Capital Adequacy Ratio (CAR) while the dependent variable is Bank Stock Price. This research is done by using quantitative method to measure three significant income growth banks listed on Indonesia Stock Exchange period 2009 – 2012. The data used in this research is secondary data. The researcher used statistical tools while the statistical method used is multiple linear regression analysis. The researcher passed the classic assumptions test while after the data analysis, it shows that partially analyzed the variable Earnings per Share (EPS) is the only one variable that has significant influence towards stock price. While for other variable which are Return on Asset (ROA), Loan to Deposit (LDR), and Capital Adequacy Ratio (CAR) are not significantly influence the stock price. The test result simultaneously shows that altogether the independent variables used in this research are influence the bank stock price. The strength of independent variable towards dependent variable is 40.80% while the rest of 59.20% is influenced by other factors that are not discussed on this research.