ANALYSIS OF FACTORS AFFECTING BANKING LIQUIDITY AND PROFITABILITY: CASE STUDY OF STATE-OWNED BANKS LISTED ON THE INDONESIA STOCK EXCHANGE PERIOD 2017 – 2019
Keywords:
Current Ratio (CR), Return on Asset (ROA), Stock Price, Liquidity, ProfitabilityAbstract
Introduction: This study analyze the factors affecting banking liquidity and profitability of state-owned banks listed on the Indonesia Stock Exchange Period 2017-2019
Objective of the paper : This study was conducted to determine and test the effect of the variable Return on Asset (ROA), Current Ratio, and Stock Price on
Liquidity and Profitability at state-owned commercial banks listed on IDX for the 2017-2019 period.
Method: This study uses secondary data using quantitative methods. There are 4 banks that are researched for 3 years on an annual basis from 2017 to 2019. The analysis used is multiple linear regression analysis. The data were processed using the Eviews 9 application by setting a significance level of 0.05 for testing the hypothesis.
Findings : This study finds that both Return On Assets (ROA) and Current Ratio (CR) have a significant effect on the stock prices.
Conclusion : It shows that the Return On Assets (ROA) has a positive and significant effect on stock prices. On the other hand, Current Ratio (CR) has a negative and significant effect on stock prices.
Downloads
References
Herliza, H., O. Yulianti, and Z.I. Ferina, Analysis of Financial Statements for Assessing Performance at PT. Enseval Putera Megatrading Tbk. Journal of Indonesian Management (JIM), 2021. 1(3): p. 217-222.
Prihartono, M.R.D. and N. Asandimitra, Analysis factors influencing financial management behaviour. International Journal of Academic Research in Business and Social Sciences, 2018. 8(8): p.308-326 DOI: https://doi.org/10.6007/IJARBSS/v8-i8/4471.
Monsurat, I., African insurance (spiritualism) and the success rate of cybercriminals in Nigeria: A study of the yahoo boys in Ilorin, Nigeria. International Journal of Cyber Criminology, 2020. 14(1): p. 300-315.
Nurdiniah, D. and E. Pradika, Effect of good corporate governance, KAP reputation, its size and leverage on integrity of financial statements. International Journal of Economics and Financial Issues, 2017. 7(4).
Bolek, M. and W. Wili'nski, The influence of liquidity on profitability of polish construction sector companies. E-Finanse: Financial Internet Quarterly, 2012. 8(1): p. 38-52.
Nalaka, S. and H. Diunugala, Factors Associating with Social Media related Crime Victimization: Evidence from the Undergraduates at a Public University in Sri Lanka. International Journal of Cyber Criminology, 2020. 14(1): p. 174-184.
Brigham, E.F. and M.C. Ehrhardt, Financial Management: Theory & Practice (Book Only). Vol.32. 2013: Cengage Learning.
Nodeland, B. and R. Morris, The Impact of Low Self-control on Past and Future Cyber Offending.International Journal of Cyber Criminology, 2020. 14(1): p. 106-120.
Brigham, E.F. and J.F. Houston, Fundamentals of financial management. Vol. 8. 2021: Cengage Learning.
Patma, K., et al., Analysis of Motivation, Knowledge and Investment Education on Investment Interest in Capital Market. Journal of Social Science, 2021. 2(4): p. 394-399.
Rumokoy, F. and S.C. Tamunu, The Influence of Fundamental Factors on Stock Return (Case Study: Company Listed in Lq45 2011-2014). Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 2015. 3(4): p. 2859.
Kengatharan, N., The Effects of Teacher Autonomy, Student Behavior and Student Engagement on Teacher Job Satisfaction. Educational Sciences: Theory & Practice, 2020. 20(4): p. 1-15.
Mehmet, S.A.K., The role of ideal L2 self in predicting L2 willingness to communicate inside and outside the classroom. Eurasian Journal of Applied Linguistics, 2020. 6(2): p. 189-203 DOI: https://doi.org/10.32601/ejal.775798.
Rusman, A., Model of Performance Improvement of Certified Teachers in Private Vocational Schools. Eurasian Journal of Educational Research, 2020. 20(86): p. 25-38 DOI: https://doi.org/10.14689/ejer.2020.86.2.
Noble, T. and P. Jandejsek, Personal and Common Good–Personal and Common Evil. Liberation Theology perspectives. European journal for philosophy of religion, 2020. 12(4) DOI: https://doi.org/10.24204/ejpr.v12i4.3527.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
