Judul: Analysis of the Effect of Bank Rating (Bank Soundness Level) on Stock Prices (Case Study: Banks Listed on the Indonesia Stock Exchange in 2016-2021)
Abstrak: Bank performance evaluation is done by analyzing its financial statements. An Understanding the company's performance through financial statements and good financial performance can reflect a good stock returns. Stock returns can be obtained by the movement of stock prices so as to obtain capital gains or by the distribution of profits made by the company or dividends. The bank's financial report also describes the development and management of the bank in carrying out its operations to assess the health of the bank. The bank's health assessment aims to determine whether the bank is in a healthy, moderately healthy, unhealthy and unhealthy condition because its activities involve raising money from the public and the trust given by the community. The health or financial condition of a bank is in the interest of all related parties, whether it is the owner, manager (management) of the bank, and the public who use bank services. Likewise, the Covid-19 pandemic caused panic in the financial sector and had an impact on banking in Indonesia. Economic growth experienced a contraction, the current account balance and capital account experienced a deficit, the rupiah weakened against the US dollar. The crisis this time is different in that the Covid-19 pandemic has never happened before, so a synergy of financial sector stimulus is needed in the form of credit restructuring in the business world. The impact on the national economy is becoming uncertain. This research aims to analyze the development and soundness of banks from financial performance ratios in banking companies listed on the IDX in 2016-2021 using the RGEC approach; analyze the effect of the ratios used in RGEC on stock returns in banking companies listed on the IDX in 2016-2019 or before Covid19; analyzed the effect of the ratios used in RGEC on stock returns in banking companies listed on the IDX in 2020-2021 or during the Covid-19 pandemic. This research analyzes the performance of the banking sub-sector listed on the Indonesia Stock Exchange in the period 2016 to 2021 using the RGEC method. The part of the method and the ratios used in assessing the health of the bank is to conduct an assessment of the risk profile (Risk Profile), Good Corporate Governance (GCG), and profitability (Earnings), capital (Capital). First, the assessment indicators used in assessing the Risk Profile aspect are NPL (Non Performing Loan) and LDR (Loan to Deposit Ratio). Second, the indicators used in the assessment of aspects of Good Corporate Governance (GCG) are Governance Structure, Governance Process, and Governance Outcomes. Third, the indicators used in the assessment of the Earnings aspect in this study are RoA (Return on Assets) and NIM (Net Interest Margin). Fourth, the indicator used in the assessment of the Capital aspect is CAR (Capital Adequacy Ratio). These four aspects were then carried out three analyzes, namely an analysis of the soundness of banks from financial ratios using the RGEC method, an analysis of the effect of RGEC ratios on stock returns before Covid-19 and an analysis of the effect of RGEC ratios on stock returns during the Covid-19 pandemic. Based on
Keyword: Banking Industry, Bank Rating (Bank Soundness Level), Banking Performance, Panel Data Analysis, Stock Returns