Main Article Content
Abstract
At present, the Central Bank of Indonesia (Bank Indonesia) uses the RGEC (Risk Profile, Governance, Earnings, and capital) method to assess the health of banks in Indonesia. Every year, the bank reports the health performance and this report is very relevant information for investors in the capital market. This study investigates whether investors in the capital market respond to the same degree from each component of the bank’s health information. By using the sample of banks listed on the Indonesia Stock Exchange in 2014-2017, this study found that investors responded positively to the earnings and the capital components but did not respond significantly to the risk profile and the governance components. The risk profile is not responded by investors, perhaps because the risk of going public banks is considered relatively low, so it is not considered as significant information affecting value. While the governance component is not responded by investors because there is a problem of the data validity or information is considered less important.
Keywords: Bank’s health, Stock Price, Risk Profile, Governance, Earnings, Capital
Article Details
References
- Ayem, Sri., and Sri Wahyuni., (2017), Effect of Loan to Deposit Ratio, Capital Adequancy Ratio, Return On Assets and Non Performing Loans on Stock Returns, Jurnal Akuntansi, 5(1), 71-87.
- Fama, F. Eugene (1991), Efficient Capital Markets: II, The Journal of Finance, XLVI(5) December, 1575-1617
- Fitrawati., M. Saifi., and Z.A. Zahroh (2016)., Application of the RGEC Approach in Analyzing Bank Performance to Know the Soundness of Banks (Case Study of PT Bank Tabungan Negara (Persero) Tbk. Period 2013-2015), Jurnal Administrasi Bisnis, 1(37), 28-36.
- Gebba, T. R., and I. E. Ahmed., (2013), The Performance of Privatized Financial Institutions in Egypt : The Case of Alexandria Bank., Journal of Applied Finance & Banking, 3(4), 245-269.
- Haryati, Sri., and E Kristijadi., (2014), The Effect of GCG Implementation And Risk Profile On Financial Perfomance At Go-Public National Commercial Banks., Journal of Indonesian Economy and Business, 3(29), 237-250.
- Haque, Samina., (2013), The Performance Analysis of Private Conventional Banks : A Case Study of Bangladesh., Journal of Business and Management, 12(1), 19-25.
- Heryana, Ratih Puji Yanti., (2018), The Effect of Bank Soundness Using the Risk-Based Bank Rating Method on Stock Returns on Banking Companies Going Public on the Indonesia Stock Exchange, Thesis, Universitas Islam Indonesia.
- Indiani, N. P. L., and S. K. S. Dewi (2016). The Influence of Bank Health Level Variables on Banking Stock Prices on the Indonesia Stock Exchange, E-Jurnal Manajemen Unud, 5(5), 2756–2785.
- Effect of Capital, Assets, Earning and Liquidity on Changes in Bank's
- Stock
- Maharani, Janestasia Putri., (2015), Effect of Bank Soundness Based on RGEC Method on Stock Return: Comparison Between Conventional Banks and Sharia Banks, Thesis, Universitas Islam Indonesia.
- Nicola, Daniel., S Manalu., and TMH Hutapea., (2017), Effect of Bank Soundless Level RGEC Method on Index Financial Inclusive in Indonesia, Journal of Applied Management., 4(15), 702-709.
- Paramartha, I Made and Ni Putu Ayu Darmayanti, (2017), Assessment of Bank Soundness Using the RGEC Method at PT. Bank Mandiri (Persero), Tbk, E-Jurnal Manajemen Unud., 2(6), 948-974.
- Sari, D Mayang., (2016), Assessment of Bank Soundness Using the RGEC Method at PT. Bank Negara Indonesia Syariah, Tbk 2014-2015., Jurnal Pendidikan dan Ekonomi., 4(6), 327-338.
- Umiyati., Q P Faly., (2015), Sharia Bank Performance Measurement with RGEC Method., Jurnal Akuntansi dan Keuangan Islam., 2(2), 185-201.
References
Ayem, Sri., and Sri Wahyuni., (2017), Effect of Loan to Deposit Ratio, Capital Adequancy Ratio, Return On Assets and Non Performing Loans on Stock Returns, Jurnal Akuntansi, 5(1), 71-87.
Fama, F. Eugene (1991), Efficient Capital Markets: II, The Journal of Finance, XLVI(5) December, 1575-1617
Fitrawati., M. Saifi., and Z.A. Zahroh (2016)., Application of the RGEC Approach in Analyzing Bank Performance to Know the Soundness of Banks (Case Study of PT Bank Tabungan Negara (Persero) Tbk. Period 2013-2015), Jurnal Administrasi Bisnis, 1(37), 28-36.
Gebba, T. R., and I. E. Ahmed., (2013), The Performance of Privatized Financial Institutions in Egypt : The Case of Alexandria Bank., Journal of Applied Finance & Banking, 3(4), 245-269.
Haryati, Sri., and E Kristijadi., (2014), The Effect of GCG Implementation And Risk Profile On Financial Perfomance At Go-Public National Commercial Banks., Journal of Indonesian Economy and Business, 3(29), 237-250.
Haque, Samina., (2013), The Performance Analysis of Private Conventional Banks : A Case Study of Bangladesh., Journal of Business and Management, 12(1), 19-25.
Heryana, Ratih Puji Yanti., (2018), The Effect of Bank Soundness Using the Risk-Based Bank Rating Method on Stock Returns on Banking Companies Going Public on the Indonesia Stock Exchange, Thesis, Universitas Islam Indonesia.
Indiani, N. P. L., and S. K. S. Dewi (2016). The Influence of Bank Health Level Variables on Banking Stock Prices on the Indonesia Stock Exchange, E-Jurnal Manajemen Unud, 5(5), 2756–2785.
Effect of Capital, Assets, Earning and Liquidity on Changes in Bank's
Stock
Maharani, Janestasia Putri., (2015), Effect of Bank Soundness Based on RGEC Method on Stock Return: Comparison Between Conventional Banks and Sharia Banks, Thesis, Universitas Islam Indonesia.
Nicola, Daniel., S Manalu., and TMH Hutapea., (2017), Effect of Bank Soundless Level RGEC Method on Index Financial Inclusive in Indonesia, Journal of Applied Management., 4(15), 702-709.
Paramartha, I Made and Ni Putu Ayu Darmayanti, (2017), Assessment of Bank Soundness Using the RGEC Method at PT. Bank Mandiri (Persero), Tbk, E-Jurnal Manajemen Unud., 2(6), 948-974.
Sari, D Mayang., (2016), Assessment of Bank Soundness Using the RGEC Method at PT. Bank Negara Indonesia Syariah, Tbk 2014-2015., Jurnal Pendidikan dan Ekonomi., 4(6), 327-338.
Umiyati., Q P Faly., (2015), Sharia Bank Performance Measurement with RGEC Method., Jurnal Akuntansi dan Keuangan Islam., 2(2), 185-201.