Investing in banking stocks in the Indonesian capital market requires understanding not only the conditions and mechanisms of the capital market, benchmark interest rates, and banking performance, but also considering the capital structure in investment analysis that can affect stock returns. This study aims to analyze the impact of capital structure on the stock returns of banking companies in Indonesia on the Indonesia Stock Exchange (IDX) from 2013 to 2022. The results of statistical regression show a negative influence of capital structure on stock returns, as well as a positive influence of ROA and liquidity on stock returns. However, market-to-book ratio, size, and earnings per share do not affect stock returns. This research provides additional insights to investors and prospective investors in banking stocks on the IDX as considerations in investment decisions.
Copyrights © 2024