THE AFFECT OF EARNING TO STOCK PRICE (A CASE STUDY OF BANK CENTRAL ASIA FOR PERIOD 2006. Q1 TO 2010. Q4)

Abstract

The research is titled The Affect of Earning to Stock Price (A Case Study of Bank Central Asia for The Period 2006. Q1 to 2010. Q4). Bank Central Asia is one of the bank companies that survive from the crisis 1997. Once facing the panic rush in 1998 and been took over by IBRA in late 1998. Public confidence in BCA was fully restored, and BCA was released by IBRA to BI in 2000. Global Financial Crisis came up in 2007 till 2009 added with rising oil price and inflation affected banking stock price. Including BCA, in 2008 the price fall almost 50% from previous price. But during that year the earning was remain in growth. As Bodie (2007) stated that price moves with earning. To find out how the affect of earning to stock price, thus this study being conduct to analyze the affect of ROA and NIM as earning measurement to stock price By using linear regression, the result shown that there is no significant relationship between ROA and Stock Price also there is significant relationship between NIM and stock price.