Linda Dwi Roswitasari, Noer Azam Achsani, Trias Andati
Abstract: The Indonesian banking sector plays an important in the national economic growth. The sector dominates the national financial system with a market share up to 78.6 %. There is a phenomenon that shows the number of banks listed on the Indonesian Stock Exchange (BEI) in the period 2010-2014 has increased every year that is followed by the increasing of banks profitability. However, the average stock price tends to decline. The bank health is the interest of all stakeholders includes investors, owners, bank management and public. Therefore, there is a need to conduct a bank performance assessment using Risk profile, Good Corporate Governance, Earnings and Capital (RGEC) method. The aim of this study is to analyze the growth of bank health ratio using the RGEC method and to examine the influence of these ratios to the stock price. This study used twenty banks listed in the BEI as a sample. Descriptive analysis and panel data between 2010 and 2014 using Random Effect Method were conducted for the data analysis. The result of this study indicates that the lowest non-performing loan (NPL) was obtained in 2013 and the lowest in 2010. In regards to the loan to deposit rasio (LDR), the lowest LDR obtained in 2012 while the highest in 2013. With respect to operational Efficiency Ratio (BOPO), the lowest BOPO was obtained in 2010 and the highest in 2010. Additionally, the panel data analysis reveals that the health of banks ratio statistically influences stock prices, NPL and LDR and the BOPO significantly influences the stock price changes.
Keywords: Banking sector, panel effect, RGEC, stock pricedata analysis, random