|
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 is all state-owned banks as many as 4 banks and because only 4 banks, all of them are taken as samples. Observation period for five years with quarterly data. Hypothesis testing using ordinary least square. The results of the study show that return on assets (ROA) and OEIR have a significant effect, while NPL, GCG and CAR no significant affect to stock returns.
|
