MARKET RATIOS ON BANK STOCK RETURNS IN INDONESIA STOCK EXCHANGE FOR THE YEARS 2008-2010

Abstract

ABSTRACT: The purpose of this research is to examine the influence of market ratios on bank stock returns in Indonesia. The data used in this research were obtained from the financial statements of all banking corporations listed in Indonesia Stock Exchange (IDX) for the years 2008-2010. Purposive sampling method was employed with the following sample criteria: banking corporations which had been continuously listed in Indonesia stock exchange, were active in stock trading and had issued and published audited financial statements in the years 2008-2010. Double regression analysis was used. The analysis results show that the Price to Book Value (PBV), Price to Earning Ratio (PER) and Earning Per Share (EPS) variables do not have any significant influence, either simultaneously or partially, on the bank stock returns in IDX for the years 2008-2010. The results are reasonable because of the high fluctuations in the data and the timing of this research, which focuses on the time period between the 2008 crisis and the 2010 market rebound.