Overview

Original Research

FINANCIAL FUNDAMENTALS OF INDONESIAN BANKS AND MACROECONOMIC FACTORS ON STOCK PRICES: MEDIATING EFFECT OF RETURN ON ASSETS

MUNTHE HERLIN 1, and HUTAHAEAN THOMAS FIRDAUS 2.

Vol 17, No 08 ( 2022 )   |  DOI: 10.5281/zenodo.7041566   |   Author Affiliation: Department of Accounting, Postgraduate Program, Faculty of Economics, Universitas Prima Indonesia, Medan, Indonesia 1,2.   |   Licensing: CC 4.0   |   Pg no: 1930-1938   |   To cite: MUNTHE HERLIN, and HUTAHAEAN THOMAS FIRDAUS. (2022). FINANCIAL FUNDAMENTALS OF INDONESIAN BANKS AND MACROECONOMIC FACTORS ON STOCK PRICES: MEDIATING EFFECT OF RETURN ON ASSETS. 17(08), 1930–1938. https://doi.org/10.5281/zenodo.7041566   |   Published on: 31-08-2022

Abstract

Financial performance is an illustration of the company's success that has been achieved on various activities that have been carried out. Financial performance is commonly used as information in assessing ratios, which can be controlled in the future, and in predicting the production capacity of existing resources. Financial performance derived from the analysis of financial statements, then used as a tool in the decision-making process in the future. Data was collected from banking financial statements listed on the Indonesian stock exchange, covering the period 2016–2020. The findings identify that financial performance includes allowance for impairment losses (ALW), Operating Expenses and Operating Income Ratio (OEOI), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM), Return on Equity (ROE), Non-Performing Loans (NPL), macroeconomics, return on assets (ROA) and stock prices can improve the financial economic status in the future.

Keywords

financial fundamentals, banking sector, stock exchange, macroeconomic factors, Stock Price