The Effect Of Car, Npm, Ldr On Stock Returns In Banking Companies Listed On The Idx In 2018-2022

Abstract

The objective of this study is to examine and assess the relationship between the loan-to-deposit ratio (LDR), Net Profit Margin (NPM), and Capital Adequacy Ratio (CAR) and Stock Returns in Banking Companies Listed on the IDX in 2018–2022. The IDX website provided secondary data for this investigation. Using a purposive sampling approach, the sample is a banking firm listed on the IDX for the years 2018 through 2022. Using specified sample selection criteria, a total of 13 businesses were included in the sample. Following the data collection, several analyses were carried out, including partial and simultaneous hypothesis testing, multiple regression analysis, a study of the coefficient of determination, and traditional assumption tests. According to the study's findings, although Net Profit Margin (NPM) and loan-to-deposit ratio (LDR) had considerable negative effects on stock returns, Capital Adequacy Ratio (CAR) had a somewhat favorable and significant impact. Then, concurrently, the 2018–2022 stock returns of banking businesses listed on the IDX are positively and significantly impacted by the Capital Adequacy Ratio (CAR), Net Profit Margin (NPM), and loan-to-deposit ratio (LDR)