THE INFLUENCE OF FINANCIAL RATIOS TOWARDS STOCK PRICE OF BANKS IN CHINA

Abstract

The objective of this research is to find out the influence of return on equity, debt to equity ratio,net profit growth rate,total asset turnover and earnings per share partially and simultaneously towards stock price of banks in China. The independent variable used in this study is return on equity, debt to equity ratio,net profit growth rate,total asset turnover and earnings per share with stock price as dependent variable.The research use quantitative methodology and multiple regression analysis as a statistical analysis. This research choose the population of 10 banks listed in Shanghai Stock Exchange during the period 2013 to 2018. With financial data that obtained from the official website of each firm,this research has 60 observation from 10 companies with annual period which fulfilled the criteria.The results show that the net profit growth rate has no significant impact, ROE and DER have a negative impact on stock prices, while TAT and EPS have a significant positive impact on stock prices.Simultaneously ROE, DER, NPG, TAT and EPS influence the stock price 88.2%.