The Influence of Banking Financial Performance on Stock Prices in Banks with the Largest Assets in Indonesia

This study aims to analyze the effect of banking financial performance on stock prices in banks with the largest assets in Indonesia during the study period. The variables that represent the financial performance of banks in this study are the Capital Adequacy Ratio, Non-Performing Loan, Loan to Deposit Ratio, and Return on Assets. The population in this study is the bank that has the largest assets in Indonesia. The number of samples in the study was ten banks that have the largest assets in Indonesia which were obtained through the purposive sampling technique. The data collection technique uses the documentation method from data sourced from the Indonesian banking statistics report, the Financial Services Authority. Data is also obtained from the annual reports and stock prices of banking companies from the Indonesia Stock Exchange in the study period. The test was carried out using a panel data regression model with the random effect method. The results showed that the Capital Adequacy Ratio and Loan to Deposit Ratio had no effect on stock prices. Meanwhile, Non-Performing Loans and Return on Assets have a significant positive effect on stock prices in the ten banks with the largest assets in Indonesia during the study period. The results of this study are expected to provide input for potential investors to always pay attention to fundamental and technical factors that can affect the company's stock price.