The Capital Adequacy Ratio And The Loan To Deposit Ratio Influence On The Price Of Banking Companies: Evidence From Indonesia

This paper aims to examine the effect of macroeconomics as measured by the exchange rate of the Capital Adequacy Ratio and Loan to Deposits Ratio  to the stock prices of banking sector companies. This paper uses a quantitative approach, with the process of finding knowledge that uses numerical data as a tool that can be generalized to prove the hypothesis. Variable data for measuring of Capital Adequacy Ratio and Loan to Deposits Ratio are obtained from financial statements of banking companies found on the Stock Exchange website Indonesia www.idx.co.id, www.ojk.go.id, www.bi.go.id and www.yahoofinance.com. The results of this study Capital Adequacy Ratio and Loan to Deposits Ratio do not have an influence on stock prices, which bear in mind that even though Capital Adequacy Ratio and Loan to Deposits Ratio which is high tend not to have value relevance with banking stock prices. The results of this study are recommended for banking customers to improve the effectiveness and efficiency of banking performance and to contribute to the banking literature. Previous research has been carried out to test macroeconomics on stock prices, the results of which concluded that macroeconomic effects on stock prices. so that the novelty in this study included the variables of bank capital, banking liquidity and control variables as comparable variables in the results of this study.