International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Most Trusted Research Journal Since Year 2012

ISSN: 2319-7064



Research Paper | Finance | Indonesia | Volume 6 Issue 9, September 2017

The Impact of Global Economic Slowdown and Financial Performance of Banks on Stock Returns in Indonesia Stock Exchange

Erdalinda, Hermanto Siregar, Arief Tri Hardiyanto

This paper aims to analyze the impact of global economic slowdown particularly the GDP growth of the United States and China as the world's largest economy, GDP growth of Indonesia and the financial performance of banks to stock returns on the Indonesia Stock Exchange during the period of 2007-2016 through panel data analysis. The analysed banks are those with the largest market capitalization in Indonesia Stock Exchange such as Bank Central Asia (BCA), Bank Rakyat Indonesia (BRI) and Bank Mandiri. The research utilizes Net Interest Margin (NIM), Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR) and Capital Adequacy Ratio (CAR), as the basis of bank financial performance. The results showed impact of global economic slowdown particularly the China GDP growth has a significant and positive impact to stock returns. Indonesia GDP growth and CAR have a significant and negative impact on stock return in Indonesia Stock Exchange.

Keywords: global economic slowdown, stock returns, financial performance, panel data analysis

Edition: Volume 6 Issue 9, September 2017

Pages: 548 - 551

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How to Cite this Article?

Erdalinda, Hermanto Siregar, Arief Tri Hardiyanto, "The Impact of Global Economic Slowdown and Financial Performance of Banks on Stock Returns in Indonesia Stock Exchange", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART20176656, Volume 6 Issue 9, September 2017, 548 - 551

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