THE INFLUENCE OF BUSINESS RISK ON CAPITALIZATION IN GOVERNMENT-OWNED BANKS

Authors

  • Mohammad Reza Pahlevi Universitas Hayam Wuruk Perbanas
  • Laely Aghe Africa Universitas Hayam Wuruk Perbanas

DOI:

https://doi.org/10.51804/econ12.v7i2.16798

Abstract

This study aims to analyze and determine the effect of der, roe and interest rates on bank stock prices. The
independent variables used in this study are the Debt to Equity Ratio, Return on Equity and interest rates. While
the stock price as the dependent variable. The population and sample in this study are conventional banking
companies listed on the Indonesian cstock exchange, totaling 8 companies for 7 years from 2014-2020. This study
uses secondary data using annual reports on www.idx.co.id and annual financial reports on the official website of
banking companies. The sampling technique used purposive sampling. The data analysis technique uses multiple
linear regression. The results of this study state that simultaneously the three independent variables, namely Debt
to Equity Ratio, Return on Equity, and interest rates have a significant effect on bank stock prices. While
partially Debt to Equity Ratio, Return on Equity, and interest rates have a positive effect on bank stock prices

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Published

2024-10-10

Issue

Vol. 7 No. 2 (2024): Oktober 2024

Section

Articles

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