PDF Get rights and content
Articles | 2024-08-03

Banking Share Prices Analysis: The Influence of Financial Ratios Amidst Digital Transformation

Setiyo Purwanto, Didin Hikmah Perkasa
Quantitative Economics and Management Studies, Vol. 5 No. 4 (2024), pp. 871-878 https://doi.org/10.35877/454RI.qems2753 Published: 2024-08-03
Get Permissions

Abstract

This research aims to analyze the influence of financial ratios on share prices in the banking sub-sector listed on the Indonesia Stock Exchange. The approach in this research is to use a quantitative approach and based on its objectives, this type of research is causal, namely research that explains the influence of an independent variable on the dependent variable. The independent variables in this research include Current Ratio (CR), Debt to Equity Ratio (DER), and Return On Assets (ROA) and the dependent variable in this research is Stock Price. The population of this research is banking companies listed on the Indonesia Stock Exchange, totaling 46 banking issuers. The sample determination procedure uses a non-probability sampling method, namely in the form of purposive sampling. Purposive sampling is a sampling technique with certain considerations. Based on the selection results, there were 20 banks that met the criteria. Data analysis was carried out using multiple linear regression analysis. The results of the analysis show that the Current Ratio and Debt to Equity Ratio have a negative effect on stock prices, Return On Assets have a positive effect on share prices.

Keywords

Current Ratio (CR), Debt to Equity Ratio (DER), Return On Asset (ROA), Share Prices (SP)

References (15)

  1. Almira, N. P. A. K., & Wiagustini, N. L. P. (2020). Return On Asset, Return On Equiry, Dan Earning Per Share Berpengaruh Terhadap Return Saham. E-Jurnal Manajemen Universitas Udayana. https://doi.org/10.24843/ejmunud.2020.v09.i03.p13
  2. Chen, T. C., Kuo, F. H., & Lin, W. B. (2021). Factors Affecting the Development Policies of Digital Deposit Accounts for the Bank in Taiwan. In Journal of Applied Finance and Banking. scienpress.com. https://www.scienpress.com/Upload/JAFB/Vol 11_4_2.pdf
  3. Darmawan, R. L., & Megawati, L. (2022). Pengaruh ROA, ROE, EPS Terhadap Harga Saham Pada Perusahaan Manufaktur Sektor Industri Semen Di Bursa Efek Indonesia. JISIP (Jurnal Ilmu Sosial Dan Pendidikan), 6(2), 3926–3935. https://doi.org/10.58258/jisip.v6i2.3033
  4. Diyanto, V. (2020). The Effect of Liquidity, Leverage and Profitability on Financial Distress. Indonesian Journal of Economics, Social, and Humanities. https://doi.org/10.31258/ijesh.2.2.127-133
  5. Ikhsani, R. G., & Haryono, N. A. (2022). Financial Management Behaviour of Mobile Legend Gamers. Technium Soc. Sci. J. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/techssj35&section=33
  6. Jiang, E. X., Yu, G. Y., & Zhang, J. (2022). Bank Competition amid Digital Disruption: Implications for Financial Inclusion. Available at SSRN 4178420. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4178420
  7. Kolhe, M. S. (2020). Digital Growth in Banking Sector and Acceptability by Bank Customers. indianjournals.com. https://www.indianjournals.com/ijor.aspx?target=ijor:ijim&volume=10&issue=4&article=003
  8. Lawati, L. (2021). The Effect of Loan to Deposit Ratio and Debt to Equity Ratio on Return on Equity. Almana : Jurnal Manajemen Dan Bisnis, 5(1), 101–107. https://doi.org/10.36555/almana.v5i1.1584
  9. Lee, D. K. C., Yan, L., & Wang, Y. (2021). A global perspective on central bank digital currency. China Economic Journal. https://doi.org/10.1080/17538963.2020.1870279
  10. Munawar, E. L. (2019). PENGARUH EARNING PER SHARE (EPS) DAN DEBT TO EQUITY RATIO (DER) TERHADAP HARGA SAHAM PERUSAHAAN YANG TERDAFTAR DI JAKARTA ISLAMIC INDEX (JII). In Sustainability (Switzerland).

How to Cite

Purwanto, S., & Perkasa, D. H. (2024). Banking Share Prices Analysis: The Influence of Financial Ratios Amidst Digital Transformation. Quantitative Economics and Management Studies, 5(4), 871–878. https://doi.org/10.35877/454RI.qems2753