The Influence of Inflation and Net Profit Margins on Banking Sector Stock Prices in Mediation of Profitability on the Indonesian Stock Exchange for the 2017-2021 Period

Camelia Ginting, Nandita Maharani Putri, Hari Fitri Wardani, Rizal Nopian, Muhammad Irfan Nasution

Abstract


The influence of stock prices in the banking sector is a consideration in making an investor's decision to determine which banking sector shares will be sold or bought. From various studies conducted to determine the factors that can affect the stock price of the banking sector, we take inflation and net profit margin (NPM) as responsible for the stock price. This study aims to analyze the impact of inflation and net profit margin (NPM), which is mediated by profitability on the stock price of the banking sector. In taking the sample, we used purposive sampling and got 8 companies in the banking sector. Testing the data using panel data regression analysis. From the analysis conducted, it is found that the net profit margin (NPM) affects profitability. Meanwhile, inflation and net profit margin (NPM) mediated by profitability do not affect stock prices in the banking sector. This writing can contribute to investors and literacy about analyzing banking sector stock prices which are affected by inflation and net profit margin (NPM) which is moderated by profitability. Investors often speculate on stock prices by analyzing financial reports or uncertain economic stability. Stock prices from the banking sector have many factors that make stock prices continue to rise or fall.



Keywords


Inflation, Net Profit Margin, Stock Prices, Return On Assets

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.128

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