Analyzing the effect of risk-based bank rating (RBBR) ratio on stock returns: a comparative study between bank buku III and buku IV in Indonesia from 2017 to 2021

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Fitri, Disotyani Nurrahma (2023) Analyzing the effect of risk-based bank rating (RBBR) ratio on stock returns: a comparative study between bank buku III and buku IV in Indonesia from 2017 to 2021. Undergraduate thesis, Sekolah Tinggi Manajemen Ipmi.

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Abstract

In recent years, traditional banks in Indonesia have been facing numerous challenges which require banks to have a good health level to survive. Although it is logical to assume that BUKU IV is the best performer among other BUKU groups due to its large core capital, it needs to be statistically proven. Therefore, this study aims to examine the impacts of RBBR ratios on the stock returns of the two largest BUKU groups - BUKU III and BUKU IV - and compare both results. This study uses five independent variables: NPL, LDR, ROA, NIM, and CAR; one control variable, bank size; and the dummy variables. BUKU III and BUKU IV, this study also uses a purposive sampling technique to determine the research sample. The RBBR analysis is used to examine the banking health level of each RBBR ratio and multiple regression analysis is performed for testing the hypotheses. The first result of this study shows that BUKU IV was healthier regarding NPL, LDR, ROA, and NIM than BUKU III and BUKU IV. Meanwhile, ROA had a negative effect and CAR had a positive impact on stock returns of BUKU III and BUKU IV. It is also noted that there was no difference between the stock returns of BUKU III and the stock returns of BUKU IV.

Item Type: Thesis (Undergraduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Bachelor of Business Administration
Depositing User: Dede Faujiah
Date Deposited: 11 Apr 2023 02:50
Last Modified: 11 Apr 2023 02:50
URI: http://repository.ipmi.ac.id/id/eprint/1927

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