THE EFFECT OF FINANCIAL PERFORMANCE ON STOCK PRICES IN STATE-OWNED BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2016-2023

Abstract

This study aims to analyze the influence of financial performance on stock prices in state-owned banking companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2023 period. The variables studied include Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), Corporate Governance Perception Index (CGPI), Return on Assets (ROA), and Capital Adequacy Ratio (CAR) as independent variables, with stock price as the dependent variable. The research uses a quantitative approach with multiple linear regression analysis. Secondary data was taken from the financial statements of four state-owned banks: Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, and Bank Tabungan Negara. Classical assumption tests are performed to ensure the validity of the model. The results show that NPL, LDR and CAR have a negative and insignificant effect on stock prices, while ROA and CGPI have a significant positive effect on stock prices.

Key Words: NPL, LDR, CGPI, ROA, CAR, Stock Price