a. Researched by Cholid Faizal (2014) about the effect of liquidity ratio, profitability ratio, activity ratio, solvability ratio and market value ratio on stock return (empirical study on manufacture company registered in Indonesia Stock Exchange periode 2010- 2012). The variabels used are current ratio, return on equity, total assets turnover, debt to equity ratio, and price to book value resulted that current ratio effects on stock price positively and significantly, return on equity effects on stock price positively and significantly, total assets turnover effects on stock price positively and significantly, debt to equity ratio does not effects on stock price, price to book value effects on stock price positively and significantly, dan current ratio, return on equity, total assets turnover, debt to equity ratio, and price to book value togeher effects on stock price positively and significantly.1
b. Researched by Any Novianti (2014) about the effect of Current Ratio (CR), Debt To Equity (DER), Net Profit Margin (NPM), Price Earning Ratio (PER) on stock price and Earning Per Share
1 Cholid Faizal, Pengaruh Rasio Likuiditas, Rasio Profitabilitas, Rasio Aktivitas, Rasio Solvabilitas, dan Rasio Nilai Pasar Terhadap Return Saham (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia Periode 2010-2012), (belum diterbitkan, 2014)
(EPS) as moderating variabel (Empirical study on manufacture company register in list of Sharia Share period 2007-2013). The variabels used are current ratio, debt to equity , net profit margin , price earning ratio on stock price and earning per share. Resulted that current ratio, debt to equity ratio, net profit margin , price earning ratio, earning per share and size together effects on stock price significantly. Meanwhile according to partial effect price earning ratio, Earning Per Share dan SIZE effects on stock price significantly and another does not. According to the second hypothesis test, only net profit margin effect on stock price strongly by earning per share .2
c. Researched by Ibrahim Ivan (2012) about the effect of liquidity ratio, profitability ratio, solvability ratio activity ratio, growth ratio and market value ratio on stock price of go public property company in Indonesia Stock Exchange (IDX) period 2005-2010.
The variabels used are current ratio, net profit margin total debt to total assets ratio , total assets turn over , earning per share and price earning ratio resulted that current ratio effects on stock price but does not significant, net profit margin does not effects on stock price, total debt to total assets ratio does not effects on stock price, total assets turnover effects on stock price significant, earning per
2 Any Novianti, tentang Pengaruh Current Ratio (Cr), Debt To Equity (Der), Net Profit Margin (Npm), Price Earning Ratio (Per) Terhadap Harga Saham Dengan Earning Per Share (Eps) Sebagai Variabel Moderasi (Studi Kasus Pada Perusahaan Manufaktur Yang Terdaftar Dalam Daftar Efek Syariโah (DES) Tahun 2007-2013), (t.tp:t.p, 2015)
share does not effects on stock price, price earning ratio does not effects on stock price, current ratio, net profit margin, total debt to total assets ratio, total assets turnover, earning per share, and price earning ratio together effects on stock price in Indonesia Stock Exchange significantly.3
d. Researched by Akhmad Firdaus (2013) about the effect of liquidity ratio, activity ratio, profitability ratio, and market value ratio on islamic stock price on goods consumption industry registered in list of Sharia Share period 2008-2011. The variabels used are current ratio, inventory turnover, account receivable turnover, retun on equtiy and earning per share resulted that all the independen variabels together effect on islamic stock price, current rasio does not effect on islamic stock price, inventory turnover does not effects on islamic stock price, account reciavable does not effects on islamic stock price, dan return on equity effects on islamic stock price.4
3 Ibrahim Ivan, Pengaruh Rasio Likuiditas, Profitabilitas, Solvabilitas, Aktivitas, Pertumbuhan Dan Penilaian Pasar Terhadap Harga Saham Pada Perusahaan Properti Yang Go Public Di Bursa Efek Indonesia (Bei) Periode 2005-2010, (t.tp:t.p, 2012).
4 Akhmad Firdaus, pengaruh rasio likuiditas, rasio aktivitas, rasio profitabilitas dan rasio pasar terhadap harga saham syariah pada industri barang konsumsi yang terdaftar di dafta efek syariah tahun 2008-2011, (t.tp:t.p, 2013)
Tabel 2.1
The similarity and diversification of The previous research and present research
No Title Similarity Diversification
1
The effect of liquidity ratio, profitability ratio, activity ratio, solvability ratio and market value ratio on
stock return
(empirical study on manufacture
company registered in Indonesia Stock Exchange periode 2010-2012)
The similarity in this research is the effect of financial ratio analysis on share of capital market, it is stock.
Diversification in this research is if the previous research use stock return as independen variable and the research object is manufacture company registered in Indonesia Stock Exchange. Meanwhile the present research us stock price as independent variabel , not all financial ratio use as dependent variabel and the research object is banking industry, it is Bank Rakyat Indonesia.
2
The effect of Current Ratio (CR), Debt To Equity (DER), Net Profit Margin
(NPM), Price
The similarity in this research is current ratio as dependent
variabel, stock
Diversification in this research is if the previous research use earning per share as moderating variabel and the research object is manufacture company register in list of Sharia
Earning Ratio (PER) on stock price and Earning Per Share (EPS) Moderating Variabe (empirical study in manufacture company register in list of Sharia share period 2007-2013)
price as
independent variabel
share period. Meanwhile the present research use earning per share as independent variabel and the research object is banking industry, it is Bank Rakyat Indonesia.
3
The effect of liquidity ratio, profitability ratio, solvability ratio activity ratio, growth ratio and market value ratio on stock price of go public property company in Indonesia Stock Exchange (IDX) period 2005-2010
The similarity in this research is financial ratio analysis on stock price.
Diversification in this research is if the previous research use stock all financial ratio as dependent variabel the research object is go public property company in Indonesia Stock Exchange Meanwhile the present research use a part of financial report as dependent variabel the research object is banking industry, it is Bank Rakyat Indonesia.
4
The effect of liquidity ratio, activity ratio, profitability ratio, and market value ratio on islamic stock price on goods consumption
industry registered in list of Sharia Share period 2008-2011.
The similarity in this research is financial ratio analysis on stock price.
Diversification in this research is if the previous research use stock all financial ratio as dependent variabel the research object is goods consumption industry registered in list of Sharia Share. Meanwhile the present research use a part of financial report as dependent variabel the research object is banking industry, it is Bank Rakyat Indonesia.
Resource : processed data
2. Theories
a. Financial Ratio Analysis 1. Financial Ratio Definition
Financial ratio is a number obtained from the result of comparison between one account of financial report and another related in relevancy and significantly. This financial ratio has been only a tool to simplify an information described in the financial report of a company. By this simplification, of course it is easier to be undesrstood the relation between one
account to another account. 5 Financial ratio analysis is a number or statistic analysis to show the correlation between one element and another elemen of finacial report , and this correlation declared mathematically and easy.6
Ratio analysis commonly use to know a financial condition of a company, indeed from this analysis we may know the performance of a company. This analysis also make the finacial report provided by a company easier to be read by society, then society may know the condition and performance of a company easy.
There are two kinds of ratio analysis method,7 there are:
a. Internal Comparison
Is an analysis compare the present ratio, the previous ratio and the future ratio.
b. Eksternal Comparison
Is an anlysis compare the company ratio and a kind of another company by industryโs average on the same point.
5 Sofyan Safari Harahap, Analisis kritis laporan keungan, (Jakarta: PT. Raja Grafindo Persada,2008), 297
6 Jumingan, Analisis Laporan Keuangan, (Jakarta : Bumi Aksara, 2008), 118
7 Muhammad, Manajemen Dana Bank Syariah, (Jakarta:PT Raja Grafindo Persada, 2014), 252
2. Kind of Financial Ratio Analysis
There are kinds of financial ratio analysis commonly use, there are:
a. Luquidity ratio
Liquidity ratio is a description of companyโs capability to settle their short term liability in exact time.
This ratio calculated by the information about working capital in financial report. 8 In this case the bank called liquid when it has a payment tool form of current asset to settle its current liability or a current asset higher than whole current liability.9
This ratio represented by Current Ratio. Current Ratio is a comparison between current asset and current liability. This ratio describes the capability of bank to settle its liability by its own current asset.
Current Ratio = ๐ถ๐ข๐๐๐๐๐ก ๐ด๐ ๐ ๐๐ก ๐ถ๐ข๐๐๐๐๐ก ๐ฟ๐๐๐๐๐๐๐ก๐ฆ10
Current liability is an asset of a company may liquid in a short time (Max a year). The component of current asset are cash, the placement in another bank, securities, receivables, supplies, prepaid expenses. Meanwhile current liability is a short term liability of a company (Max a year).
8 Sofyan Syafari Harahap, Analisis Kritis,301
9 Veithzal Rivai, Andria Permata Veithzal, Ferry N Idroes, Bank and Financial Institution Management conventional and Syarโi System,(Jakarta:PT Raja Grafindo Persada, 2007),722
10 Muhammad, Manajemen Dana, 253
The component of current lian analysis compare a kind of company ratio and another company ratio by equal average of industry.
Liability are debt of trade, debt of another bank in a year, bill liabilities, liabilities of salaries, tax liabilities, profit sharing, prepaid expenses, long term liabilities almost matureand another short tem liabilites.11
From this ratio calculation, when the ratio is low, it means that the company lack of equity to settle its liability.
But when the ratio is high, it does not mean the company in good condition, because cas may not use properly. As the world goes the standard of this ratio is 200 % (2:1).12
b. Solvability Ratio
Solvability ratio is ratio describes the capability of bank to settle its long term liabilities when a bank being liquidated. This ratio calculate by a long term account of finacial report, example fixed asset and long term liabilities.13
This ratio represented by Debt to Equity Ratio. This ratio is a comparison between total debt and equity. This ratio describes the capability of equity owned by bank to settle its liabilities.
11 Kasmir, Analisis Laporan Keuangan, (Jakarta : PT. Raja Grafindo Persada, 2013), 134
12 Ibid., 135
13 Sofyan, Analisis Kritis,303
Debt to Equity Ratio =๐๐๐ก๐๐ ๐ท๐๐๐ก ๐ธ๐๐ข๐๐ก๐ฆ 14
From this ratio calculation, when the ratio is high it means that equity by liabilities is in great quantities then the company unable to add another loan worried of difficulty in settling the liabilities by its own asset. Meanwhile when the ratio is low, it means that equity by liabilities is in a few quantities.
c. Market Ratio
Market ratio is a ratio describes the capability of bank joining the capital market or in form of invesment.
This ratio represented by earning per share ratio.15 Earning per share is a comparison between net profit dengan number of share.
Earning Per Share = ๐๐๐ก ๐๐๐๐๐๐ก ๐๐ข๐๐๐๐ ๐๐ ๐ โ๐๐๐๐ 16 b. Stock
1. Stock Definition
According to Anoraga and Pakarti (2008:58) Stock is a securities as partisipation or ownership of individual or institusional in a company. Meanwhile according to Kasmir (2012:185) stock is a securities has the quality of ownership.
14 Kasmir, Analisis Laporan, 156
15 Muhammad, Manajemen Dana ,259
16 Ibid., 260
From both definition above, saham can be defined as a securities of ownwership evidence from a company. Thus, who own the stock of a company, it means he is the owner of that company. The more he has the stock the more he owned and dominance in that company.
In addition of being the owner of a company, people who has a stock will get a profit upon its ownership. This case became the first purpose of invesment. The investor will get two kinds of profit, there are deviden, commonly called as profit sharing of a company and capital gain, commonly called as a profit that obtained when the stock sold.
Because of profit is the first purpose od investor, so in deciding of invesment, investor will analyse the performance of company berfore he invest. The company with a good performace will obtain a high deman of stock, the more better performance the higher demand of stock. And vice versa, the more worse performance the lower demand of stock. The fluctuation of demand and supply form a stock price of a company.
Stock price is a price formed in the market and its quantity influence by the number of demand and supply. 17 in another definition stock price is a money paid for get a
17 Muhammad Samsul, Pasar Modal dan Manajemen Portofolio, (Jakarta : Erlangga, 2015), 197
pertisipation or an ownwership of a company.18 So, base on the definition above stock price can be define as a money paid for a partisipation or ownership as much as market price.the stock value or the stock price devinded into 3 kinds, 19 there are :
a. Par Value (Nominal value)
Nominal value is a value inserted in a stock for accounting purpose or report.
b. Base Price
Principal price or base price, use in calculating stock price index. For a new stock, base price is principal price.
c. Market Price
Market price is a price in real market. And it is the easiest price to determine, because it is a stock price in the ongoing market or when the market close, it is a closing price of stock.
2. Stock Assesment
Stock value is an estimation of stock price by a certain calculation or by investor insting.20 Mean while stock assesment did to analyse the performance of a company. This matter did by investor in estimating the stock value that the investor will buy, so the profit he wants will get. There are two
18 Pandji Anoraga, Pengantar Pasar Modal, (Jakarta : Rineka Cipta, 2008), 100
19 Ibid.,58
20 Muhammad Samsul, Pasar Modal dan Manajemen Portofolio, (Jakarta : Erlangga, 2015), 197
kinds of analysis in analyzing and choosing a stock, there are Fundamental analysis and tehnichal analysis. Fundamental analysis is a tehnique in estimating stock price in future by measuring the fundamental factors and correlate them till obtain the price estimation. Mean while tehnichal analysis is a tehnique of stock price analysis in future by seeing at the development of stock price day by day.21
In this research, researcher wants to observe is the fundamental analysis told before proof that effect on stock price. In fundamental analysis, there are many financial ratios commonly use, there are liquidity ratio, sovability ratio, profitability ratio activity ratio and market ratio. But in this research, a part of ratios taken as independen varibel, there are, current ratio as the representative of liquidity ratio, debt to asset ratio as the representative of solvability ratio and earning per share as the representative of market ratio.
Weston dan Brigham in Utami (2015:3) the factors that effect on stock price are Earning Per Share, interest rate, the number of profit sharing, the number of profit obtained by a company, risk level and retun.
21 Veithzal, Bank and Financial Institution, 996
A. Description of The Research Object
1. The History of Bank Rakyat Indonesia
Bank Rakyat Indonesia (BRI) is one of the biggest Governmentโs Bank in Indonesia. At the beginning, Bank Rakyat Indonesia (BRI) established in Purwokerto, Middle of Java by Raden Bei Aria Wijaatmadja called as De Poerwokertosche Hulp en Spaarbank der Inlandsche Hoofden or โBank Bantuan dan Simpanan Milik Kaum Priyayi Purwokertoโ, a financial institution serves the native society. That institution build on December 16th, 1895, and itโs called as Bank Rakyat Indonesiaโs Birthday.
On the period after the independence of Indonesia, based on Indonesiaโs regulation no 1 1946 paraghraph 1 mantioned that Bank Rakyat Indonesia as the first Governmentโs Bank in Indoneisa. In war to defend the liberty of Indonesia on 1948, Bank Rakyat Indonesiaโs Activity stops for a while and being activated since the Renville agreement on 1949 and being called as Bank Rakyat Indonesia Serikat.
Since August 1st, 1992 based on constitions of Banking no 7 1992 and government regulation of Republic Indonesia no 21 1992 Bank Rakyat Indonesia change its status to limited liability company. The ownership of Bank Rakyat Indonesia today is still belong to Indonesiaโs government. On 2003, Indonesiaโs government Pemerintah decided to sell 30% of Bank
Rakyat Indonesiaโs stock, then this bank became the public company called as Bank Rakyat Indonesia Inc.
2. Vision dan Mission of Bank Rakyat Indonesia a. Vision of Bank Rakyat Indonesia
The vision of the Bank is being the leading commercial bank that always prioritize customer satisfaction.
b. Mission of Bank Rakyat Indonesia
1. to conduct the best banking practice with a priority given to services the Micro, Small and Medium Enterprises (MSMEs) in order to support the economy of the people.
2. To provide its customers with excellent services delivered through its vast network and supported by professional human resources, while adhering to the practices of Good Corporate Governance.
3. To create optimal values and benefits for its stakeholders.
3. The Strategy of Bank Rakyat Indonesia
To achive that vision and mission, the long term strategy should be apply is developing and maintaining and increasing the exertion to focus on banking services in micro, small, and medium with wide network and supported by a shopisticated information tehcnology and a profesional human resources and of course by doing the risk management and good corporate governance.
4. Scope of Bussiness
The diversity of Bank Rakyat Indoensiaโs services, each services give the different service. The service given to the customers for the sake of costomers profit and for the sake of Bank Rakyat Indonesia itself.
Onpiont of lending services, Bank Rakyat Indonesia focusing on the satisfaction of costomers to create the loyal costumers. In this case, Bank Rakyat Indonesia give a good service on the variety of product. There are the product of Bank Rakyat Indonesia :
a. Funding
This service is an activity to collect the fund from society, and it is called as funding. This service did by offering the variety of saving product. Saving often called as account. In saving product, Bank Rakyat Indonesia provide the secure and safe money keeping service. There are the saving product of Bank rakyat Indonesia :
1. Giro
Kind of Giro product : a. Giro BRI Rupiah b. Giro BRI Valas 2. Savings
Kind of Savings product:
a. Tabungan Britama b. Tabungan Simpedes c. Tabungan Simpedes TKI
d. Tabungan Haji
e. Tabungan Britama Dollar f. Tabungan Britama Bisnis g. Tabungan Britama Rencana h. Tabungan Britama Valas i. Tabungan Britama Junio j. Tabunganku
3. Deposito
Kind of deposito product : a. Deposito Rupiah b. Deposito Valas c. Deposito On Call b. Lending
This service is an activity to canalize the fund gotten from society, it is called as lending. canalize did thourgh lending and called as credit. The credt given by bank consist of various product based on the interest rate offered by bank. Fo instance KUR (kredit usaha mikro) here Bank Rakyat Indonesia offers 0,4% with a credit plafond IDR 25 million. While comersial offers 1,2% with a credit plafond IDR IDR 200 million.
Before the kredit given, the bank should analyze the credit feasibility submitted by the customers. This feasibility include of many aspects, the aspect method are 5C and 7P. 5C analysis are the