THE EFFECT OF BANKING FINANCIAL RATIO ON THE DEVELOPMENT IN INDONESIA STOCK EXCHANGE

Abstract

The purpose of this study to probes the connection between variables of financial performance and capital market development. It employs an analysis on the panel data of period of 2011-2017. The research findings show that: (1) Capital Adequacy Ratio (CAR), Loan to Deposits Ratio (LDR), Return on Asset (ROA), and Non-Performing Loan (NPL) notably affect the amount of issued stock and stock price, (2) Return on Asset (ROA), Capital Adequacy Ratio (CAR), Earning per share (EPS), and Debt to Total Assets (DTA) significantly influence market capitalization. (3) Net Interest Margin significantly influences the price of stock and Return on Equity (ROA) remarkably affects the quantity of issued stock.