Exploring Factors Affecting Stock Price of Indonesia State Owned Bank Listed at Indonesia Stock Exchange

Journal Title: Academic Research International - Year 2015, Vol 6, Issue 3

Abstract

Each company has a goal to get as much profit as possible. In achieving its objectives the company can do various things that include funding. There are various alternatives by the company to earn as much money as possible for the sake of the survival of the company. One way is to attract investors to invest their capital as a source of corporate funding. Capital markets investment is a tool to bring together those who have surplus funds and those in need of funds. The banking industry in Indonesia is somewhat interesting. As Indonesia survives the 2008 world financial crisis, Indonesia has grown interest of other countries. The banking industry surely is one pillar to support the growth of one nation. Investors are surely keen to see opportunity in investing in this sector especially the state-owned bank that dominates the banking industry in Indonesia. However, banks have different operating structures than regular industrial companies. Therefore, investors have different factors to consider when evaluating banks and contemplating for an investment in a bank. The study resulted on recommendation for investors to invest in Bank Mandiri, Bank BNI and Bank BRI because it was found that through financial ratios alone is beneficial and greatly affect the stock price. For Bank BRI the result is however, there is no significant relationship of financial ratios and inflation on its stock price.

Authors and Affiliations

Francis M. Hutabarat, Janet Flora

Keywords

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  • EP ID EP148565
  • DOI -
  • Views 72
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How To Cite

Francis M. Hutabarat, Janet Flora (2015). Exploring Factors Affecting Stock Price of Indonesia State Owned Bank Listed at Indonesia Stock Exchange. Academic Research International, 6(3), 42-52. https://www.europub.co.uk/articles/-A-148565