Pengaruh Profitabilitas Terhadap Harga Saham Perbankan Di Bursa Efek Indonesia Tahun 2017-2020

Abstract

This study aims to determine and analyze the effect of profitability as measured by Return on Assets, Return On Equity, and Net Profit Margin on banking stock prices listed on the Indonesia Stock Exchange in 2017-2020, either partially or simultaneously.

Profitability is the company's ability to earn profits in relation to sales, total assets and own capital. Return on assets (ROA) measures the company's ability to generate net income based on a certain level of assets. Return on Equity (ROE) examines the extent to which a company uses its resources to be able to provide a return on equity. Net profit margin is a measure of the company's ability to generate profits compared to the sales achieved.

The analytical tools used include multiple linear regression analysis and hypothesis testing using the t test and F test. The classical assumption test is carried out to meet the assumptions of Best, Linear, Unbiased, and Estimated (BLUE).

The results of the analysis show that Return on Assets and Return On Equity each have a positive and insignificant effect on banking stock prices listed on the Indonesia Stock Exchange in 2017-2020. The Net Profit Margin has a positive and significant effect on the stock prices of banks listed on the Indonesia Stock Exchange in 2017-2020. The results of this study indicate that investors tend to view Net Profit Margin as an aspect of company profitability in determining their stock investment activities in banking companies listed on the Indonesia Stock Exchange, because it is considered more reflective of the company's financial performance compared to Return On Assets and Return On Equity