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Journal : Econetica

The Impact of Profitability Ratios on Islamic Bank Stock Prices Arif Lubis, Fauzi; Nurwani, Nurwani; Hayani, Mifta
Econetica: Jurnal Sosial, Ekonomi, dan Bisnis Vol 5 No 1 (2023): Mei 2023
Publisher : Program Studi Ekonomi Islam Fakultas Ekonomi Universitas Nahdlatul UlamaNusa Tenggara Barat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69503/econetica.v5i1.363

Abstract

This study investigates the effect of profitability ratios on the stock prices of Islamic banks listedon the Indonesia Stock Exchange (IDX) during the period 2018–2020. The research employs aquantitative approach using secondary financial data derived from the annual reports of threeIslamic banks, namely Bank BRI Syariah, Bank Panin Dubai Syariah, and Bank BTPN Syariah.Profitability is measured through Return on Assets (ROA), Return on Equity (ROE), and Earningsper Share (EPS), while stock price serves as the dependent variable. Data are analyzed usingmultiple linear regression and classical assumption tests to ensure the validity of results. Thefindings reveal that EPS has a positive and significant influence on stock prices, whereas ROAand ROE show positive butstatistically insignificant effects. Simultaneously, all three profitabilityindicators collectively exert a significant impact on the stock prices of Islamic banks. Theseresults suggest that investors in Indonesia’s Islamic capital market place greater emphasis onearnings information as a reliable signal of firm performance. The study contributes to thegrowing literature on Islamic finance by offering empirical evidence from emerging marketconditions and provides insights for investors, bank managers, and policymakers seeking toenhance financial transparency and market confidence in the Islamic banking sector
Co-Authors Abdul Azis Adriansyah, Muhammad Agustinus Agustinus AHMADI Akhsan Akhsan Alfarizi, Mhd Reza Andar Indra Sastra Anggun Pratiwi Anton, Syahri Arfianty Arfianty, Arfianty Arif Tribowo Arifin Fauzi Lubis Aritonang, Solahuddin Arman Arman Arnida Wahyuni Arnida Wahyuni Lubis Asmawati Asmawati Asrah, Bengi Atika Atika Aulia, Jihan Luthfi Bancin, Kiki Amelia Chairunnisa, Lita Christiana, Irma Damhuri Damhuri Dharma, Budi Erika Erika Fajriawan, Rezki fatimah Fatimah Fatmawati, Lia Nur Fransiska, Ira Gunawan, Asrul Gurusinga, Mellya Friska Halijah, Nur Harun, Hernianti Hastina Febriaty Hayani, Mifta Hayat, Kumala Helmi, Halimah Hendra Harmain Hendra Harmain Hernianti Harun Indradewa, Rhian Juliati Nasution, Yenni Samri Jumriani, Jumriani Kamila, Kamila Kusmilawaty, Kusmilawaty Laylan Syafina Lingga, Fitria Ratna Lubis, Fatimah Aini Lubis, Herlin Syahdina Lubis, Nurul Azhrah Mahira, Tengku Ismalia Maisyura, Dina Mandani, Putih Marliyah, Marliyah Marpaung, Tuah Rizky Martis, Martis Maysarah, Maysarah Mutmainnah Mutmainnah Nashuha Harahap, Vania Ananda Nasution, Alya Elva Lianda Nasution, Annio Indah Lestari Nasution, Juliana Nasution, Yenni Samri Julianti Nirwana, Nirwana Afiah Hidayati Nisa, Sofatun Nur Hakimah Nurain Nurain, Nurain Nurhapsah, Nurhapsa Nurhayati, Putri Nurul Jannah Pertiwi, Tri Bagus Pratama, Dela Puspita, Windy Putra, Ary Satria Rahmadani, Nurianti Rahmani, Nur Ahmadi Bi Ramadhani, Sri Rokan, Mustafa Kamal Rosadi, Imran Sagala, Syarah Asda Pratiwi Samri Juliati Nasution, Yenni Sari Wahyuni Saskia Aulia Ashar Sihombing, Amira Salsabila Afra Siregar, Ayu Lestari Siregar, Sylviana Sovianum, Sovianum Sri Mustika Aulia Sugianto Sugianto Suhardi, Dayu Suwifania, Jihan Syahrur H. Imran Tarisa, Cut Try Wahyu Purnomo Tuti Anggraini Wahyu Syarvina Wahyundari, Sri Putri Wardatussyfa, Wardatussyfa Yasri Tarawiru YENNI SAMRI JULIATI NASUTION, YENNI SAMRI JULIATI Yenni Samri Juliati Nst yunaidi yunaidi Yusrizal Yusrizal Zahara, Annisa