| Summary: | The purpose of this research is to analyze the influence of profitability ratio that
is proxied by Return on Assets (ROA), Net Profit Margin (NPM) and Biaya
Operasional/Pendapatan Operasional (BOPO) towards stock price of banking sector.
The population of this research is the entire listed banking in Indonesia Stock
Exchange in 2009-2011. From choosing sample use purposive sampling method
obtained 25 banks that fulfill prescribe particular criteria. The research method used
in this research is multiple linear regressions used to know the power of influence and
the direction of relationship between dependent variable and independent variable. A
classic assumption test is also conducted using normality test, multicolinearity test,
heteroscedastisity test and autocorrelation test.
Based on the results of the classic assumption test could be known that the used
data in this research was normal distributed and no digressing of multicolinearity test,
heteroscedastisity test and autocorrelation test was found.
Hypothesis test showed that Return on Assets (ROA) and Net Profit Margin
(NPM) have positive but insignificant effects towards stock price. On the other hand,
Biaya Operasional/Pendapatan Operasional (BOPO) has a negative and significant
effect towards stock price.
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