INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE)
Vol. 2 No. 10 (2025): JULY

THE EFFECT OF RGEC COMPONENTS ON THE SHARE PRICE OF BANKING SECTOR COMPANIES

Tri Kartika Sari (Faculty of Economics and Business, Universitas Nusantara PGRI Kediri, Indonesia)
Linawati Linawati (Faculty of Economics and Business, Universitas Nusantara PGRI Kediri, Indonesia)
Erna Puspita (Faculty of Economics and Business, Universitas Nusantara PGRI Kediri, Indonesia)



Article Info

Publish Date
19 Jul 2025

Abstract

This research is motivated by a significant decline in banking stock prices in 2024, triggered by the end of the credit restructuring stimulus by the OJK and the massive sell-off by foreign investors. This condition raises concerns about increasing credit risks and declining market confidence. Therefore, this study aims to analyze the influence of bank health factors using the RGEC (Risk Profile, Good Corporate Governance, Earning, and Capital) approach. The variables used include Risk Profile (NPL), GCG (Self Assessment), Earning (NIM), and Capital (CAR) on the share price of banking companies listed on the Indonesia Stock Exchange for the 2022–2024 period. The research method used was a quantitative approach with purposive sampling techniques, resulting in 32 banking companies as a sample during three years of observation. Data analysis was carried out using classical assumption tests, multiple linear regression, determination coefficient tests, and hypothesis tests with  SPSS software version 30. The results of the study showed that partially, GCG, NIM, and CAR had a significant effect on stock prices, while NPLs had no significant influence. Simultaneously, all components of RGEC have a significant effect on the share price of banking companies.

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Journal Info

Abbrev

INJOLE

Publisher

Subject

Description

INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE) is a scientific journal that publishes articles in the Business field includes conceptual ideas in the fields of Economics, Accounting, Management, business. The scopes are Human Resource Management, Marketing Management, Financial Management, ...