Analysis Relates to the Impact From Macroeconomic Factors to Banking Stock Returns Which Mediated by Profitability

Abstract

This research aims to analyze the impact which caused by macroeconomic factors to stock returns which mediated by profitability. This research used purposive sampling method with BUKU IV Banks who Listed on the Indonesia Stock Exchange as sample in this research period. The data was taken from the quarterly financial reports of the sample banks and Bank Indonesia. The analysis technique that used in this research are panel data regression and used path analysis to reveal the impact which caused by intervening variable. The results found that interest rates had no significant impact towards stock returns, while the inflation rate and the rupiah exchange rate had a direct significant impact on stock returns. Path analysis found that interest rates, inflation rates and Rupiah exchange rate had no significant affect on stock returns which indirectly mediated by profitability. This research results are very useful as an information for investors and stakeholders to determine good investment decisions in the banking sector.

Financial Performance Affecting Stock Prices of Food and Beverage Sub-Sector Companies in Indonesia

“…Shareholders also receive dividends distributed by the company. However, in addition to returns, shareholders will always receive a trade off between returns and risks from an investment in stocks (Riwayati & Diena, 2021). In the capital market, there are two types of shares traded on the Indonesia Stock Exchange, namely common stock and preferred stock.…”

“…In the financial statements, factors that affect the company's share price are predicted through profitability ratios to assess the ability to make a profit (Hutabarat & Riwayati, 2021). The probability measurement is carried out using several ratios, namely: return on assets, return on equity and earnings per share (Riwayati & Diena, 2021). In this research, the solvency ratio is the key number used to measure the level of external funding of the company's assets, i.e.…”

Financial Performance and Firm Value: The Role of Signaling Theory

“…Internal factors are factors that arise from within the company, including company size, company growth, funding decisions, dividend decisions [13]. While external factors are factors that come from outside the company, for example, problems related to macroeconomics such as inflation, interest rates, economic growth and the rupiah exchange rate against the dollar [14]. As for internal factors, financial managers have an important role in determining the ups and downs of the company's value [15].…”

Determinants of Banking Sector Stock Prices in Indonesia

“…Furthermore, the metric provides investors with valuable insight into the ability of banking companies to effectively manage their assets and generate profits. Riwayati and Aviliani (2022) found that ROA affects share prices for stateowned banking companies. Return On Equity (ROE) is obtained by dividing net income by total capital (Tambunan, 2013).…”

“…EPS helps investors see how well the company is achieving returns for shareholders by rewarding stock returns. Riwayati and Aviliani (2022) found that EPS positively affects stock prices for state-owned bank companies.…”