Abstract:
The stock price is a reflection of the value of a company. Success in
generating profits will provide satisfaction for investors. A high enough share
price will benefit the company making it easier for management to get funds from
outside the company. This study aims to determine the effect of the amount of risk
taking on lending, the desire to get profits by increasing capital, risk taking to
increase returns, the tendency to increase profits from current assets on the
performance of stock prices of banking companies in Indonesia as measured by
Risk Profile (ratio NPL & ratio LDR), Earnings (ratio ROA & ratio NIM), and
Capital (ratio CAR).The population used in this study are companies listed on the
Indonesia Stock Exchange in the Banking sector in 2016-2019 with a sample of 4
BUMN Banks and 9 BUSN (Foreign Exchange) Banks that were randomly
selected. The type of data used is Secondary Data which analyzes the Quarterly
Financial Statements from the Year 2016-2019 quarter 3. Data collection
methods used are Descriptive Quantitative Methods with Multiple Linear
Regression research. The results showed that there was only one variable that
significantly influenced BUMN Bank companies, namely B1 (Effect of Risk Taking
on Credit Granting) and BUSN (Foreign Exchange) companies only two variables
that had a significant effect namely B1 (Effect of Large Risk Taking) On Credit
Provision) and B4 (Tendency to Increase Profits from Current Assets on Stock
Price Performance) of Banking Companies in Indonesia.
