THE INFLUENCE OF CAPITAL ADEQUACY RATIO (CAR), EARNING PER SHARE (EPS), RETURN ON EQUITY (ROE), LOAN TO DEPOSIT RATIO (LDR) TOWARD STOCK PRICE (Study Case On 6 Biggest Asset Private Bank Listed In IDX Period 2009 - 2012)

Abstract

This study was conducted to determine whether financial ratios banks which include Capital Adequacy Ratio (CAR), Earning Per Share (EPS), Return On Equity (ROE) and Loan to Deposit Ratio (LDR) have a significant effect on stock prices. The samples used were 6 biggest asset private banks listed on the Stock Exchange during the period 2009-2012 which is PT Bank Central Asia Tbk, PT CIMB Niaga, PT Bank Danamon Tbk, PT Pan Indonesia Tbk, PT Bank Permata Tbk and PT Bank International Indonesia Tbk. There are two variables that are raised: the Stock Price as the dependent variable and financial ratios CAR, EPS, ROE and LDR as an independent variable. This research is using secondary data from the financial report of Indonesia Stock Exchange (IDX) which is quarterly data from 1st Quarter of 2009 to 4th Quarter of 2012. This research used panel data which using multiregression model. Based on F-test all variable altogether influence stock price with the significant degree 0.000 and the strength of influence or F-value 38,454 which is stronger than 1.96. While the T-test result shows only 2 variables that partially has significant influence towards stock price which is ROE with the value 6,110 which showing positive relation towards stock price meaning the increasing of ROE will increase stock price. While LDR with the value -5,284 which showing negative relation towards stock price meaning the decreasing of LDR will increase stock price. The R square value shows 61.2% where it shows the capability of the variables altogether to influence the stock price.