Impact of Financial Ratios on Stock Price: Evidence from Indian Listed Banks on NSE

This study aims to examine the impact of financial ratios on the stock prices of companies listed on NIFTY Bank. Nifty Bank is a sub-index of NIFTY 50 and has various listed banks included based on the criteria given by NSE. This study data has been taken from the period 2010-2019 and taken from the company annual reports. The analysis is done using panel data regression and other tests to verify the best model for the dataset. The results obtained from this study show that the capital adequacy ratio and the dividend payout ratio do not impact the stock price. In contrast, earnings per share, net NPA ratio, and basic earnings per share, net profit margin, and net interest margin exhibited a relationship with the stock price. In the Indian context, there is less research available on this topic, and the idea chosen for the study is original. Along with this, the data collected for the study and the code used for analysis is original work. New investors can use the results of this study in the Indian stock market to analyze a stock and take proper investment decisions. Another practical usage of this study is that banking sector companies can improve their ratios to attract new investors.

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Pengaruh Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return on Assets, Loan To Deposit Ratio, dan Bank Size terhadap Harga Saham Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia

Jurnal Manajemen Bisnis dan Kewirausahaan ◽

10.24912/jmbk.v5i5.13330 ◽

2021 ◽

Vol 5 (5) ◽

pp. 546

Author(s):

Aries Santoso ◽

Carunia Mulya Firdausy

Keyword(s):

Significant Influence ◽

Stock Price ◽

Banking Sector ◽

Stock Exchange ◽

Capital Adequacy ◽

Return On Assets ◽

Purposive Sampling ◽

Net Interest Margin ◽

Capital Adequacy Ratio ◽

Interest Margin

This study aims to analyze the influence of Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return on Assets, Loan to Deposit Ratio, and Bank Size jointly and partially to Stock Price of banking sector company that listed on Indonesian Stock Exchange for period 2011-2018. This research used the purposive sampling method and obtained the 5 largest market capital banking sector companies as a sample. The analysis method used is multiple linear regression through SPSS 26 program. The results of this study show that Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return On Assets, Loan to Deposit Ratio, and Bank Size have significant influence to stock price. While Capital Adequacy Ratio, Non-Performing Loan, Loan to Deposit Ratio partially have significant influence on the stock price. Meanwhile, Net Interest Margin, Return On Asset, and Bank Size have not a significant influence on the stock price of banking sector company that listed on the Indonesian Stock Exchange for period 2011-2018. Penelitian ini dimaksudkan untuk mencari pengaruh Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return On Assets, Loan to Deposit Ratio, dan Bank Size mengenai keterkaitannya pada harga saham baik secara bersamaan maupun parsial terhadap harga saham perusahaan sektor bank yang ada di Bursa Efek Indonesia untuk periode penelitian 2011 – 2018. Penelitian ini mengunakan metode purposive sampling yang ditetapkan sebanyak 5 perusahaan sektor perbankan yang memiliki kapitalisasi pasar terbesar sebagai sampel. Metode analisis yang dipakai menggunakan regresi linear berganda melalui bantuan SPSS 26. Hasil penelitian membuktikan secara simultan, Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return On Assets, Loan to Deposit Ratio, dan Bank Size berpengaruh signifikan terhadap harga saham. Sementara secara parsial, Capital Adequacy Ratio, Non-Performing Loan, dan Loan to Deposit Ratio berpengaruh terhadap harga saham. Sedangkan Net Interest Margin, Return On Asset, dan Bank Size tidak berkaitan terhadap harga saham sektor bank yang terdaftar di Bursa Efek Indonesia periode 2011-2018.

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Achieving Financial Sustainability in Ghana’s Banking Sector: Is Environmental, Social and Governance Reporting Contributive?

Global Business Review ◽

10.1177/09721509211044300 ◽

2021 ◽

pp. 097215092110443

Author(s):

Haruna Maama

Keyword(s):

Banking Sector ◽

Annual Reports ◽

Financial Sustainability ◽

Environmental Reporting ◽

Return On Assets ◽

Reporting Practices ◽

Net Interest Margin ◽

Content Analysis Method ◽

Negative Impacts ◽

The Impact

Despite banks not having any significant direct negative impacts on the environment and society, they adopt environmental, social and governance (ESG) accounting. Meanwhile, ESG reporting consumes additional resources and exposes firms’ strategies to competitors. The study employed a legitimacy theory to investigate the impact of ESG reporting on the financial sustainability of banks in Ghana. The study relied on 10 years of annual reports of all the banks in Ghana. The banks’ ESG reporting practices were assessed based on a content analysis method. The financial sustainability was measured based on return on assets (ROA) and net interest margin (NIM). Evidence showed that environmental reporting (ERI) impacted the banks’ NIM and ROA inversely and significantly, whilst governance reporting had a positive but insignificant relationship with NIM and ROA. The result further demonstrated that social reporting (SRI) impacted NIM and ROA positively and significantly. The overall ESG reporting had a negative and significant relationship with the banks’ financial sustainability. Hence, the ESG reporting did not improve the financial sustainability of banks, and banks in Ghana have less of an incentive to report on ESG as opposed to banks in other countries, where such reporting generally makes financial sense.

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PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM 10 BANK TERKEMUKA DI INDONESIA

Jurnal Akuntansi ◽

10.24912/ja.v19i2.93 ◽

2017 ◽

Vol 19 (2) ◽

pp. 179

Author(s):

Indra Satria ◽

Iha Haryani Hatta

Keyword(s):

Central Asia ◽

Stock Price ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Capital Adequacy ◽

Financial Ratios ◽

Return On Equity ◽

Purposive Sampling ◽

Capital Adequacy Ratio ◽

The Impact

Penelitian ini bertujuan untuk mengetahui dampak rasio keuangan terhadap harga saham sepuluh bank terkemuka di Indonesia. Penelitian ini menggunakan metode purposive sampling untuk sepuluh bank yang go public di Bursa Efek Indonesia periode 2013-2014 dengan kriteria berikut : (1) memiliki aset dengan jumlah terbesar pada tahun 2013-2014 (2) memiliki informasi rasio keuangan pada tahun 2013-2014 (3) tidak terjadi pemecahan saham pada tahun 2013-2014 (4) hasil pengolahan data statistiknya memenuhi uji asumsi klasik. Berdasarkan kriteria itu, maka jumlah bank yang terpilih adalah Bank Central Asia Tbk, Bank Negara Indonesia (Persero) Tbk, Bank Mandiri (Persero) Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia (Persero) Tbk, Bank Permata Tbk, Bank Pan Indonesia Tbk, Bank CIMB Niaga Tbk, Bank Tabungan Negara (Persero) Tbk dan Bank International Indonesia Tbk. Variabel tidak bebas dalam penelitian ini adalah harga saham, sementara variabel terikat adalah Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). Data dianalisis dengan menggunakan analisa regresi linier berganda. Hasil penelitian menunjukkan bahwa variabel bebas (LDR, NPL, CAR, and ROE) secara simultan berpengaruh signifikan terhadap harga saham. Secara parsial, LDR, CAR dan ROE berpengaruh signifikan terhadap harga saham. Sementara, NPL tidak berpengaruh terhadap harga saham.This research is to determine the impact of financial ratios on the stock price of ten leading banks in Indonesia. This research using a purposive sampling method for the ten banks that listed on the Indonesian Stock Exchange in the years 2013-2014 with the following criteria : (1) has assets with the largest number in the years 2013-2014 (2) has information about financial ratios in the years 2013-2014 (3) a stock split does not occur in the years 2013-2014 (4) the results of the processing of statistical data meets classical assumption. Based on the criteria, the then banks selected are Bank Central Asia Tbk, Bank Negara Indonesia (Persero) Tbk, Bank Mandiri (Persero) Tbk, Bank Danamon Indonesia Tbk, Bank Rakyat Indonesia (Persero) Tbk, Bank Permata Tbk, Bank Pan Indonesia Tbk, Bank CIMB Niaga Tbk, Bank Negara Indonesia (Persero) Tbk and Bank International Indonesia Tbk. The dependent variable in this research is the stock price, while the dependent variable are Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Capital Adequacy Ratio (CAR) and Return on Equity (ROE). Data were analyzed using multiple linear regression analysis. The results showed that the independent variables (LDR, NPL, CAR, and ROE) simultaneously significant effect on the stock price. Partially, LDR, CAR and ROE have a significant effect on the stock price. Meanwhile, NPL has no effect on the stock price.

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Financial Performance as Mediator on the Impact of Capital Structure, Wealth Structure, Financial Structure on Stock Price: The Case of The Indonesian Banking Sector

European Journal of Business Management and Research ◽

10.24018/ejbmr.2020.5.5.526 ◽

2020 ◽

Vol 5 (5) ◽

Author(s):

Herman Sjahruddin ◽

Andi Mansyur ◽

Abd. Rahman Mus ◽

Zainuddin Rahman ◽

Suriyanti Suriyanti

Keyword(s):

Capital Structure ◽

Financial Performance ◽

Stock Prices ◽

Stock Price ◽

Structural Equation ◽

Banking Sector ◽

Financial Structure ◽

Model Testing ◽

The Impact ◽

The Capital Structure

This research examines the financial performance as a mediating variable in analyzing the capital structure, wealth structure, and financial structure of stock prices by using trade-off theory and signaling theory. This study uses 145 secondary data in the form of bank financial reports listed on the Indonesia Stock Exchange (IDX). Model testing uses structural equation (SEM) through the SmartPLS version 3.0 programs. The results of model testing show that capital structure and financial structure can reduce financial performance, wealth structure can improve financial performance. High financial performance cannot increase stock prices. The capital structure does not lower the stock price, the wealth structure raises the stock price, and the financial structure lowers the stock price. Financial performance does not mediate the effect of capital structure, wealth structure, and financial structure on stock prices.

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PENGARUH INFORMASI KEUANGAN DAN AKSI KORPORASI TERHADAP HARGA SAHAM PERUSAHAAN INDUSTRI DASAR DAN KIMIA TAHUN 2015-2017

Jurnal Akuntansi Bisnis ◽

10.30813/jab.v12i2.1777 ◽

2019 ◽

Vol 12 (2) ◽

Author(s):

Veny Veny

Keyword(s):

Stock Prices ◽

Stock Price ◽

Stock Exchange ◽

Financial Statements ◽

Financial Ratios ◽

Return On Assets ◽

Company Stock ◽

Earnings Per Share ◽

Equity Ratio ◽

Chemical Companies

<div class="WordSection1">ABSTRACT: This study wants to see the influence of financial information issued by companies, such as financial ratios to changes in company stock prices. The financial ratios examined for their influence on stock prices include: return on assets, earnings per share, dividend per share and debt equity ratio. The population of this study were basic industrial and chemical companies that were listed on the Indonesian stock exchange during 2015-2017, of which 18 basic industry and chemical companies listed during the study period were taken by 18 companies as research samples namely companies that reported financial statements in full, do not have negative earnings, report financial statements using IDR currency and do not do stocksplit during the year of the study.This research was conducted using multiple regression methods to see the effect of return on assets, earnings per share, dividend per share and debt equity ratio to stock prices. From the results of the study it is known that the ratio of return on assets, dividend per share and debt equity ratio has a positive and not significant effect on stock prices, while earnings per share has a significant positive effect on stock prices. With this research, investors are expected to be able to utilize existing financial data to be able to anticipate stock price movements so that investors can benefit and avoid possible losses.Keyword : Financial Ratio, Return on Assets, Earning Per Share, Dividend Per Share dan Debt Equity Ratio, stock price. ABSTRAK: Penelitian ini ingin melihat pengaruh dari informasi keuangan yang diterbitkan perusahaan, seperti rasio keuangan terhadap perubahan harga saham perusahaan. Rasio keuangan yang diteliti pengaruhnya terhadap harga saham antara lain: return on assets, earning per share, dividend per share dan debt equity ratio. Populasi dari penelitian ini adalah perusahaan industri dasar dan kimia yang terdaftar pada bursa efek Indonesia selama tahun 2015-2017, dimana dari 55 perusahaan industri dasar dan kimia yang terdaftar selama periode penelitian diambil 18 perusahaan sebagai sampel penelitian yaitu perusahaan yang melaporkan laporan keuangan secara lengkap, tidak memiliki laba negatif, melaporkan laporan keuangan dengan menggunakan mata uang IDR dan tidak melakukan stocksplit selama tahun penelitian.Penelitian ini dilakukan dengan menggunakan metode regresi berganda untuk melihat pengaruh dari return on assets, earning per share, dividend per share dan debt equity ratio terhadap harga saham. Dari hasil penelitian diketahui bahwa rasio return on assets, dividend per share dan debt equity ratio berpengaruh positif tidak signifikan terhadap harga saham, sedangkan earning per share berpengaruh positif signifikan terhadap harga saham. Dengan adanya penelitian ini diharapkan investor dapat memanfaatkan data keuangan yang ada untuk dapat mengantisipasi pergerakkan harga saham sehingga investor bisa mendapatkan keuntungan dan menghindari kerugian yang mungkin terjadi.Kata Kunci: Rasio keuangan, Return on Assets, Earning Per Share, Dividend Per Share dan Debt Equity Ratio, Harga saham</div>

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Pengaruh Faktor Internal dan Eksternal Terhadap Harga Saham

Jurnal Ilmiah Akuntansi dan Humanika ◽

10.23887/jiah.v10i2.25862 ◽

2020 ◽

Vol 10 (2) ◽

pp. 176

Author(s):

Elvin Ruswanda Yudistira ◽

I Made Pradana Adiputra

Keyword(s):

Stock Prices ◽

Stock Price ◽

Inflation Rate ◽

Banking Sector ◽

Stock Exchange ◽

External Factors ◽

Return On Assets ◽

Internal Factors ◽

Return On Equity ◽

Net Interest Margin

The purpose of this experiment is to prove internal factors and external factors to the stock price. Internal factors include: Return on Assets, Return on Equity, Net Interest Margin and Operating Costs / Operational Scoping. While external factors include: the inflation rate and the BI rate. The population in this study is the company placed on the Indonesia Stock Exchange (IDX) in the banking sector for the 2015-2019 period. There were 32 people represented in this study and used a collection technique, namely purposive sampling. The final results in this study indicate that ROA has a positive and significant effect on stock prices. ROE is negative and significant towards stock prices. Negative shares and insignificant stock prices. BOPO negative and insignificant influence on stock prices. The inflation rate is negative and insignificant towards stock prices. BI Rate has a positive and insignificant effect on stock prices. Simultaneously ROA, ROE, NIM, BOPO, Inflation Rate and BI Rate significantly influence stock prices.

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The Impact of Stock Characteristics on Its Market Price in Jordanian Commercial Banks

Modern Applied Science ◽

10.5539/mas.v14n3p45 ◽

2020 ◽

Vol 14 (3) ◽

pp. 45

Author(s):

Belal Rabah Taher Shammout

Keyword(s):

Stock Prices ◽

Commercial Banks ◽

Stock Price ◽

Market Price ◽

Decision Makers ◽

Book Value ◽

Earnings Per Share ◽

Price Earnings Ratio ◽

Controlling Variables ◽

The Impact

The study aims at identifying the impact of stock characteristics represented by (Earnings Per Share (EPS), Book Value Ratio (BVR), Dividends Per Share (DPS), Dividends Payout Ratio (DPR), Market to Book Ratio (MBR), Price Earnings Ratio (PER), and Yield Per Share (YPE)) on the market stock price in the 13 commercial banks in Jordan during the period from 2005 to 2018. Multiple Linear Regression has been used to illustrate the impact of the independent variables and the controlling variables on the dependent variable. The study has found that there is a significant impact of stock characteristics on its market price at the Jordanian commercial banks. The study also found a statistically significant impact for each book value ratio, dividends per share, market to book ratio, price-earnings ratio, and yield per share on the market price at the Jordanian commercial banks. However, there was no statistically significant effect for each of the earnings per share and dividend’s payout ratio on the market price at the Jordanian commercial banks. The study recommends that investors, analysts, and decision-makers use the characteristics of stocks when carrying out analyses before making important investment decisions that can affect their wealth in the future through forecasting stock prices.

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PENGARUH ANALISIS RETURN ON EQUITY, ECONOMIC VALUE ADDED, NET WORKING CAPITAL RATIO TERHADAP HARGA SAHAM INDUSTRI MANUFAKTUR DI BURSA EFEK JAKARTA

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2006.v10.i3.409 ◽

2018 ◽

Vol 10 (3) ◽

pp. 394-408

Author(s):

Wimba Respatia

Keyword(s):

Stock Prices ◽

Stock Price ◽

Economic Value ◽

Value Added ◽

Financial Ratios ◽

Economic Value Added ◽

Working Capital ◽

Cross Sectional ◽

Return On Equity ◽

The Impact

Real stock price actually is depend on the fundamental condition of the company. Investor make some invest decision with buy some stock, before that they must consider about emiten profit, deviden, growth of sale and asset for the time frame. Beside that, company prospect in the future must be consider. Stock price influence by EVA and financial ratios. In this research we combines about the influence of financial ratios and EVA to stock prices for the manufacture industries inIndonesia.This study aims to investigate the impact of economic value added, return on equity and net working capital ratio to the stock price of the manufacture industries in BEJ. We used purposive sampling method, with pooled cross sectional during 2001 until 2003 in 52 companies. Multiple regression model was used to test hypthesis with take 3 free variables.The test hypthesis about return on equity, economic value added and net working capital ratio in BEJ during 2001 until 2003, doesn’t put to a test. It’s identification with one variable wich is doesn’t give the influence to the stock price in manufacture industries, the variable is return on equity ratios and the other variables which are give the influence to the stock price are : economic value added and net working capital ratio.

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Value Correlation of Deferred Income Tax In Industrialization

CONVERTER ◽

10.17762/converter.43 ◽

2021 ◽

pp. 129-143

Author(s):

Tao Zhang, Wanzhen Yu

Keyword(s):

Stock Prices ◽

Income Tax ◽

Stock Price ◽

Negative Impact ◽

Positive Impact ◽

Good News ◽

Earnings Per Share ◽

Long Run ◽

Adjustment Variable ◽

The Impact

This paper collects 2670 deferred income tax samples from 211 listed industrial companies that have been surviving and continuously disclosing deferred income tax accounting information from 2007 to 2019. On the basis of ohlson model, earnings per share and net flow of operating activities per share are added as adjustment variables to analyze the impact of deferred income tax on stock prices. The results show that:(1) In the long run, DTAs are positively correlated with enterprise stock prices, while DTLs are negatively correlated with enterprise stock prices; (2) After adding the adjustment variable earnings per share, it is found that when EPS level is high, DTAs have a slightly downward negative impact on stock prices, while DTLs have little negative impact on stock prices. When EPS level is low, DTAs have a positive impact on stock prices, while lower earnings per share will accelerate the negative impact of DTLs on stock prices. (3) After adding the adjustment variable CFO, it is found that only when the CFO is sufficient, DTAs are really good news. It has a positive impact on stock price. If the CFO is poor, the positive impact of recognized DTAs on stock price is almost zero. In addition, when the CFO is high, the negative impact of DTLs on price will be accelerated.

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THE IMPACT OF THE FINANCIAL RATIOS AS THE MEASUREMENT UPON THE PERFORMANCE OF RETURN ON ASSETS AT THE PUBLIC BANKS IN INDONESIA (The Empiric Study upon The Banking Companies Registered at BEI in 2012-2015)

The Accounting Journal of Binaniaga ◽

10.33062/ajb.v2i1.9 ◽

2018 ◽

Vol 2 (1) ◽

Author(s):

Gilang Ramadhan Fajri

Keyword(s):

Hypothesis Test ◽

Sampling Technique ◽

Capital Adequacy ◽

Financial Ratios ◽

Return On Assets ◽

Partial Regression Coefficient ◽

Net Interest Margin ◽

Public Banks ◽

Level Of Significance ◽

The Impact

This research is an empiric study about The Impact of The Financial Ratios as The Measurement upon The Performance of Return on Assets of Public Banks In Indonesia (The Empiric Study upon The Banking Companies Registered at BEI in 2012-2015), sampling technique being used is purposive sampling which is the total samples of 30 companies. The aims of this study is to prove that the impact of financial ratios refers to Capital Adequacy Ratio (CAR), Operational Cost comparing to the Operational Revenue (BOPO), Net Interest Margin (NIM), Non Performing Loan (NPL) neto and Loan to Deposit Ratio (LDR) against the banks performance measured by Return On Asset (ROA) and which variable has been affecting the most dominant upon Return On Assets (ROA). The analysis technique being applied is multiple linear regression and the hypothesis test using t-statistics to examine a partial regression coefficient and f-statistics to examine the compliance of the research model refers to the level of significance 5%. Furthermore, the research has applied the classical assumption test covering normality test, multicollinierity test, heteroxedasity test and auto-correlation test.

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