Moderating Role of Financial Technology towards the Effects of Financial Performance, Good Corporate Governance and Macroeconomics on Stock Returns of Indonesia 4 Category Banks

Aruan, Melitta and Sembel, Roy and Malau, Melinda (2022) Moderating Role of Financial Technology towards the Effects of Financial Performance, Good Corporate Governance and Macroeconomics on Stock Returns of Indonesia 4 Category Banks. In: 5 th International CEO Communication, Economics, Organization & Social Sciences Congress. NCM Publishing House, pp. 1126-1144. ISBN 978-605-73822-7-6

	Text ModeratingRoleofFinancialTechnology.pdf Download (1MB)
	Text (Hasil Turnitin) HasilTurnitinModeratingRoleofFinancialTechnology.pdf Download (10MB)

Abstract

This study used analyzes and evaluates the impact of macroeconomics and financial performance on stock returns of Indonesian 4 category Banks from 2012 – 2021 with Financial Technology as a moderating variable. Macroeconomic is assessed using GDP growth, interest rate, exchange rate, and market return. Financial Performance is measured by using RGEC Methods (Risk Profile, Good Corporate Governance, Earnings and Capital). The Risk Profile variables consist of Non-Performing Loans (NPL) and Loan to Deposit Ratio (LDR) while Good Corporate Governance (GCG) use Composite Rating GCG, Earnings using ratios of Return on Assets (ROA), Net Interest Margin (NIM) and Capital using Capital Adequacy Ratio (CAR). This study used descriptive quantitative and the Regression Data Panel Analysis to answer the research questions. The data sources used in this study are secondary data. Eviews are used to analyze the data in this study. This study concluded that GDP growth, exchange rate, market return and NPL are significantly affected stock returns. This study also found that Financial Technology moderated the impact of NPL on-stock returns. The other independent variables had no effect, and Financial Technology did not have moderating effect to other independent variables. The results of this study help researchers and practitioners understand the internal and external factors that affect banking industry in the financial technology era. Investors who want to invest in the banking sector are encouraged to analyze and closely monitor the GDP Growth, exchange rate, market return and NPL because they have a positive effect on the return of their investment. Keywords: Stock Returns, Macroeconomic, GCG, RGEC, Financial Technology

Actions (login required)

View Item