Risk based bank rating and stock return a case study on state-owned bank in Indonesia

DOI

10.2991/insyma-19.2019.18How to use a DOI?

Keywords

good corporate governance, non performing loan, return on assets

Abstract

The purpose of this research is to examine the effect of bank soundness as measured by risk based bank rating on stock returns. Risk based bank rating consists of risk profile (credit risk-NPL and liquidity risk-LDR), GCG disclosure, earnings (return on assets-ROA and operating expense to income ratio-OEIR), and capital (CAR). The population in this research was 4 state-owned banks and because only 4 banks, then all of them were taken as samples. Observation period was five years with quarterly data. Hypothesis testing used ordinary least square. The results of the study show that return on assets (ROA) and OEIR had a significant effect, while NPL, GCG and CAR had no significant affect on stock returns.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Sutrisno
AU  - Bagus Panuntun
PY  - 2019/03
DA  - 2019/03
TI  - Risk based bank rating and stock return a case study on state-owned bank in Indonesia
BT  - Proceedings of the 16th International Symposium on Management (INSYMA 2019)
PB  - Atlantis Press
SP  - 71
EP  - 74
SN  - 2352-5398
UR  - https://doi.org/10.2991/insyma-19.2019.18
DO  - 10.2991/insyma-19.2019.18
ID  - 2019/03
ER  -