Background of the study
Company Profile
Problem Identified
Statements of Problems
Research Objectives
Significance and Important of Study
Theoretical Framework
Scope and Limitation of Study
Hypothesis
Definition of Terms
Stocks
According to Darmadji and Fakhruddin (2001:5), shares can be defined as a mark or ownership of people or entities within the company. The form of the stock is a piece of paper that states that the owner of that paper is the owner of the company that issued the stock. That if the company goes bankrupt, the maximum loss that the shareholders suffer is as much as they invest in the company.
Dividends that can be given by the company in terms of cash means that each shareholder will be given dividend in terms of cash in specific amount or it can be given as dividend shares means that each shareholder will get dividend in terms of new shares so that the shares that the investors own will increase by sharing those dividends. Bonus shares (if any) the company's shares are distributed to shareholders taken from Agio, Agio is the difference between the selling price of the nominal price of these shares at the company's public offering prime market, for example each share with a nominal value of Rp 500 Rp.800 sold each share will provide premium to the company amounting to Rp.300 per share. Another risk that the investor faces is when the company's shares are delisted from the stock exchange.
This price is the price of such shares at the time recorded on the stock exchange.
Financial Institution
If the initial price is the agreed selling price of the issues to investors, the market price is the selling price of a single investor to another investor. The transactions here no longer include the issuer of the signatory of this price is called the secondary market price and the price is the one that really represents the price of the issuing company, because the transactions in the secondary market, there has been a small negotiation of the price of the investor with the publishers. . Every day the price announced in newspapers or other media is the market price.
Non-financial companies Non-financial companies are manufacturing companies that produce products in the form of goods, such as cars, steel, computers, and/or companies that provide non-financial services, such as: transportation and the production of computer programs. Financial institutions in the financial world operate as an institution that provides financial services to its customers, which are generally governed by the regulatory authorities of government finances. The general form of these financial institutions includes banking, building society (a type of co-operative in the UK), credit union, stockbroking, wealth management, venture capital, co-operatives, insurance, pension funds, pawnbrokers and companies.
Financial institutions in Indonesia are divided into 2 groups: bank financial institutions and non-bank financial institutions (insurance, mortgages, securities firms, financial institutions, etc.).
Bank Financial Institutions
First as an institution that collects funds from the public in the form of deposits. Second, as the institutions that channel funds to the community in the form of credit, and the third, a commercial transaction and circulation of money launched. The Bank has a very important role in the economy, especially in the monetary payment system.
First, related to the function of the bank as a trust institution for saving public funds, the special role of the bank in the creation of money and payment system mechanisms in the economy. Second, as financial intermediary institutions, banks have a special role in mobilizing society's savings to be channeled in the form of loans and other financing for businesses. This will expand and simplify the process of mobilizing and allocating resources in the economy.
On the macro side, the bank is required because of its important role in the process of money creation and payment systems, as well as in promoting the effectiveness of the monetary policy transmission mechanism and the efficiency of the distribution of resources in the economy (Warjiyo.
Non Bank Financial Institutions
The third important function is related to the role of banks both in terms of micro and macro. From the micro level, banks are required as a public trust institution to meet the needs of saving money, obtaining credit and other financing as well as to carry out various economic and financial transactions. That role places banks as financial institutions that play an important role in our economic system.
The main categories of institutional investors are pension funds, insurance companies and mutual funds, in most advanced countries institutional investors, rather than retail investors, are the main holders of securities. Similarly, as financial systems become more advanced, an increasing share of financial intermediation takes place through the capital markets rather than through the banking system.
Measuring Bank Performance
Ho : The independent variables (PER, NIM and NPL) have no significant correlation with the dependent variable (stock price PT. Ha : the independent variables (PER, NIM and NPL) have a significant correlation with the dependent variable (stock price PT. The data consists of PER, NIM, NPL and share price of PT Bank Permata, Tbk.
The purpose of this research is to find out whether there is a significant impact of PER, NIM and NPL on PT share price. Ho : Between PER, NIM and NPL at the same time, there is no impact on the stock market price of PT. Ha : There is a simultaneous influence between PER, NIM and NPL on the stock market price of PT.
The researcher concludes that there are significant influences between PER, NIM and NPL on the share price of PT.
Object of Research
Research Method
Research Instruments
Statistical Treatment
Hypothesis Test
The coefficient of determinants is used to determine the percentage contribution of the influence of the independent variables on the dependent variables simultaneously. This coefficient indicates how large a percentage of the independent variables used in the model can explain the variation in the independent variable. R² is equal to 0, then there is no effect of any percentage contribution of the independent variables on the dependent variable.
Otherwise, R² is equal to 1, the percentage contribution of the influence of a given independent variable on the dependent variable is perfect, or a variation of the independent variables used in the model explains 100% variation in the dependent variable.
Testing Model for Significance
Blue Assumptions (Best Linear Unbiased Estimator)
Autocorrelation is a condition in which the correlation between the residuals in the observations with other observations in the regression model occurs. An autocorrelation test is used to determine whether there is a correlation between the residuals in the observations and observations in the regression model. Test method using the Durbin Watson test (DW test) with the condition that the DW is between -4 and +4, indicating that no autocorrelation has occurred in the regression model.
The purpose of the heteroscedasticity test is to test whether there is variance in the inequality of one residual observation to another observation in the regression model. If the variance of the residuals from one observation to another remains the same, it is called homoscedasticity, and conversely, if the variance is different, it is called heteroscedasticity. To determine whether heteroskedasticity in the regression model is visible in the scatterplot plot.
If the point in the graph does not spread to form a particular pattern, then heterocesdasticity does not occur.
Limitations
In this chapter, the results of the analysis study of the share price of PT Bank Permata, Tbk will be tested and analyzed. Researcher will analyze whether share price is affected by measurement of PER, NIM and NPL of PT Bank Permata, Tbk or not. From the following figures, the normal likelihood regression plot standardizes residual with PER, NIM and NPL as independent variable and share price of PT.
The result of the correlation coefficient (R) is 0.720, which can be categorized as a strong correlation between PER, NIM and NPL on stock price. For the determinant test ( , PER, NIM and NPL yields a 51.8% contribution to PT's share price. The F-test measurement is also relevant with the results of R and , by simultaneously including all independent variables extracted from PER exist , NIM and NPL have a significant influence on the stock price, which is 0.000 < 0.05 (confidence level).
Considering the above results, PER, NIM and NPL can be one of the decisive factors in choosing companies, especially banks for investors who want to have a capital gain from the selected company's share price (in this case, PT. Bank Permata, Tbk).
Standard Residual Plots
- Histogram
- Multicolinearity
- Normal Probability Plot
- Scatter Plot (Heteroscesdaticity)
- Autocorrelation Test
If the data is normally distributed, the points will plot along an approximately straight line drawn through the middle half of the points. If the data is normally distributed, the points will spread out and not form a pattern. If the points are tending to make a pattern, it means that the data is not normally distributed and is considered to be heteroscedasticity.
If the data are spread over each other and do not make a pattern/shape, the writer might say, the tendency of the data to turn into homoscedasticity. From the figure above it can be seen that the points are spread with each other and it does not create a pattern or is not normally distributed, so the data can be considered as heteroskedasticity. The regression coefficient of the variable PER( ); which means that if the PER increases by 1%, then the share price (Y) will decrease by IDR 46.310 assuming that other independent variables remain the same.
Regression coefficient of variable NPL( ); which means that if NPL has an increase for 1%, then share price (Y) will have a decrease for IDR 130.176 assuming the other independent variables remain the same.
Regression Model Result
- Coefficient of Correlation (R) and determination
Significance of the model
- F-Test
- T-Test
The researcher can conclude that there is strong evidence for a linear regression relationship because the probability is 0.001 less than β = 0.05 (confidence level). Since t number > t table (5.524 > 1.995) so Ho is rejected, it means that NIM has a partially significant influence on PT's stock price. Bank Permata, Tbk, with the adjusted R-square accounting for 49.7%, while the remaining 51.3% is contributed by another variable in addition to this model.
In the Standard Error of the Estimate, the result is 112.063, which means that the number of errors in the prediction of the stock price of IDR 112.063 from the stock price. For NPL (Non Performing Loan) they must have Early Warning System especially for loans that will be categorized as loss in the future. For PER (Price Earnings Ratio) Permata Bank had to worry about the net income they can generate from the business to have a good EPS.
Buying back the stock can also be one of the investment strategies to increase the PER.
Conclusion
Recommendations