Impact Profitability, Liquidity, and Credit Risk to Market Capitalization Banking Sector on the Indonesia Stock Exchange
Keywords:
Profitability, liquidity, credit risk, market capitalizationAbstract
This study will determine the profitability, liquidity, and credit risk of the banking sub-sector's market capitalization listed on the Indonesia Stock Exchange from 2009-2018. This research method used panel data regression analysis. The sampling method of this research used a purposive sampling technique. The F-test results showed that profitability, liquidity, and credit risk simultaneously had a significant effect on market capitalization. The test results with the t-test show that only profitability has a significant positive impact on market capitalization. In contrast, other variables, namely liquidity and credit risk, had an insignificant effect.
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