EFFECT OF CAMEL METHOD ON STOCK PRICES IN DIGITAL BANK COMPANIES LISTED ON IDX 2020-2023
This research investigates the impact of various financial health indicators, known as CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, and Liquidity), on the stock prices of digital banks listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. This study is motivated by the...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/80204 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | This research investigates the impact of various financial health indicators,
known as CAMEL (Capital Adequacy, Asset Quality, Management, Earnings, and
Liquidity), on the stock prices of digital banks listed on the Indonesia Stock Exchange
(IDX) from 2020 to 2023. This study is motivated by the increasing popularity of digital
banks in Indonesia, driven by the growing demand for digital financial services during
the pandemic. In 2020-2021, there was a significant fluctuation in the stock prices of
digital banks due to changes in the economic climate. However, this was short-lived, as
there was a drastic decrease in stock prices for digital banks in 2022-2023.
This research employs a quantitative method with panel data analysis techniques.
The sample selection used purposive sampling, resulting in eight digital bank companies
in Indonesia. The results indicate that Capital Adequacy and Management have a
positive influence on stock prices. On the other hand, the elements of Asset Quality,
Earnings, and Liquidity do not have a significant impact on stock prices. Therefore,
digital banks need to pay more attention to their financial health, especially in terms of
capital adequacy and management. This is done to enhance stock prices and attract
investor interest.
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