Impact Profitability, Liquidity, and Credit Risk to Market Capitalization Banking Sector on the Indonesia Stock Exchange

Authors

  • Masrurotus Sa'adah Muhammadyah Surabaya University
  • Didin Fatihudin
  • Anita Roosmawarni

Keywords:

Profitability, liquidity, credit risk, market capitalization

Abstract

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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Published

2023-01-21

How to Cite

Sa’adah, M., Fatihudin, D., & Roosmawarni, A. (2023). Impact Profitability, Liquidity, and Credit Risk to Market Capitalization Banking Sector on the Indonesia Stock Exchange. The Journal of Management, Digital Business and Entrepreneurship, 1(1), 8–20. Retrieved from http://ojs.glowsci.com/index.php/JMDBE/article/view/3

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