Banking Intermediation, Asset Quality, Price Earning Ratio and Stock Prices and their Impact on Corporate Value - Study at the Regional Development Bank of West Java and Banten Provinces in Indonesia
Buchory, Herry Achmad
MetadataShow full item record
This research was conducted in order to determine the influence of Banking Intermediation, Assets Quality, Price Earning Ratio to Stock Prices and its impact on Corporate Value. The indicator of banking intermediation with Loans to Deposits Ratio (LDR), indicator of asset quality with Non-Performing Loan (NPL), stock price with closing price and corporate value measured by Price Book Value (PBV). The descriptive and verification methods with the quantitative approach will be used in this research. Secondary data sources are from the quarterly published financial statements of the Regional Development Banks of West Java and Banten Provinces for the period of 2012 – 2019 and multiple linear regression is used to analyse data. The study results state that LDR and PER had a partially positive and significant influence, except NPL which had a negative and significant influence on stock prices. Simultaneously LDR, NPL, and PER significantly influence stock prices, while stock prices have a significant impact on PBV.