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Determinants of Return on Assets and Implications on Stock Price Changes Level

Author

Listed:
  • Yani Riyani

    (Politeknik Negeri Pontianak, Indonesia.)

  • Kartawati Mardiah

    (Politeknik Negeri Pontianak, Indonesia.)

  • Linda Suherma

    (Politeknik Negeri Pontianak, Indonesia.)

Abstract

This study aims to determine the effect of loan to deposit ratio and non-performing loans on Return On Assets and Implications for Stock Price Rate of Change using SPSS 16.0 statistical software. In this study, there are 4 variables: Loan to Deposit Ratio and non-performing loans as independent variables (X1 and X2) and Return on Assets and Stock Price Rate of Change as a dependent variable (Y) and (Z). The research method used is a causal associative method that aims to determine the relationship between two or more variables. Effect of Loan to Deposit Ratio, Non Performing Loan to Return On Assets. Based on the results of SPSS processing, it can be concluded that the influence of Loan To Deposit Ratio and non-performing loans to levels not significantly change in the stock price. While the level of stock price changes is influenced by the Loan to Deposit Ratio and non-performing loans amounted to 2.10% while the remaining 97.90% is influenced by other factors.

Suggested Citation

  • Yani Riyani & Kartawati Mardiah & Linda Suherma, 2019. "Determinants of Return on Assets and Implications on Stock Price Changes Level," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 110-114.
    • Handle: RePEc:eco:journ1:2019-02-13
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    References listed on IDEAS

    as
    1. Beck, Roland & Jakubik, Petr & Piloiu, Anamaria, 2013. "Non-performing loans: what matters in addition to the economic cycle?," Working Paper Series 1515, European Central Bank.
    2. Svetozar Tanasković & Maja Jandrić, 2015. "Macroeconomic and Institutional Determinants of Non-performing Loans," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 4(1), pages 47-62.
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    More about this item

    Keywords

    Loan to Deposit Ratio; Non Performing Loan; Return on Assets; Stock Price;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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