The Effect of Financial Performance on Changes in Stock Prices in Banking Campanies on The Indonesian Stock Exchange (BEI)

Abstract

This study aims to prove the influence of financial performance on stock prices. This research was conducted on 7 banks listed on the IDX for the 2015-2019 period, namely BCA,BNI,BRI,BII, Mandiri, Bukopin and South Sulawesi banks.

Financial performance consists of several variables, including Return On Assets (ROA) and Capital Aduquacy Ratio (CAR). The research method used in this study is a quantitative method. Data testing was carried out with the SPSS 21 tool using classical assumptions and multiple linear regression.

The result of this study, simultaneously CAR, ROA and LDR have no positive and significant effect on stock prices with a t-count value of 0.946 > t-table 1.753. Partially, the variable has no positive effect on stock prices, while the ROA variable has a t-count value of 0.833 > t table 1.753, there is no negative and insignificant effect on stock prices, for the LDR variable has a t-count value of 0.763 > t table 1.753, there is no negative and significant to stock prices.