THE INFLUENCE OF NON-PERFORMING LOANS AND CAPITAL ADEQUACY RATIO ON SHARE PRICES (EMPIRICAL STUDY OF BANKING REGISTERED ON THE ISE FOR THE 2016-2018 PERIOD)

Abstract

This study aims to determine whether non-performing loans and capital adequacy ratios
affect the stock price of banks listed on the Indonesia Stock Exchange in the 2016-2018
period. The factors tested in this study are non-performing loans and capital adequacy ratios
as independent variables, while stock prices as the dependent variable. The research method
used in this study is the explanatory method. The population in this study is conventional
banking which is listed on the Indonesia Stock Exchange in the 2016-2018 period, amounting
to 43 companies. The sampling technique used in this study was non probability sampling
with a purposive sampling method, so the total sample was 36 companies. Analysis of the
data used in this study is panel data regression analysis at a significance level of 5%. The
program used in analyzing data uses Eviews 9. The research results partially and
simultaneously show that non-performing loans and capital adequacy ratios affect stock
prices. In addition, the results of the study also showed that the magnitude of the effect of
non-performing loans and capital adequacy ratios in giving a contribution to the stock price
of 45.1%