The Influence of CAMEL Ratio on Bank Stock Price Changes Post COVID-19
Main Article Content
Abstract
The purpose of this study is to empirically test the effect of CAMEL on changes in stock prices after COVID-19 in banking companies listed on the Indonesia Stock Exchange. This study is descriptive explanatory with a quantitative approach. Analysis with data processing using the EViews program. The results of the study indicate that CAR has no significant effect on changes in stock prices, RORA has a significant effect and has a negative relationship direction on changes in stock prices, NPM has no significant effect on changes in stock prices, ROA has a significant effect and has a positive relationship direction on changes in stock prices, and LDR has no significant effect on changes in stock prices.
Article Details

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
K. Pakpahan, “Investment strategies in capital markets,”The Winners, vol. 4, no. 2, pp. 138–147, 2003.
D. Rustiana and S. Ramadhani, “Strategy in the Islamic Capital Market,”Jikem: Journal of Computer Science, Economics and Management, vol. 2, no. 1, pp. 1578–1589, 2022.
Dr. Sulistyastuti,Stocks and Bonds: A Summary of Theory and Questions and Answers. Atma Jaya University, Yogyakarta., 2002.
S. Su, S. Jia, and G. Shi, “Leverage adjustment behavior and stock price crash risk,”Finance Research Letters, vol. 56, p. 104156, September 2023, doi: 10.1016/j.frl.2023.104156.
MR Keffala, “How does the use of derivative instruments and their objectives affect the performance of Islamic banks? Evidence from the CAMELS approach,”Global Finance Journal, vol. 50, p. 100520, November 2021, doi: 10.1016/j.gfj.2020.100520.
HY Purba, D. Darminto, and MWE NP, “Camel Analysis to Assess Banking Company Performance (Study on Government-Owned Banks that Go Public on the IDX),”JAB, vol. 29, no. 1, pp. 86–94, December 2015.
VTP Fiola, “Camel Analysis to Assess Financial Performance in Banking Companies Listed on the Indonesia Stock Exchange,” Thesis, PalComTech Institute of Technology and Business, Palembang, South Sumatra, 2024.
S. Hermuningsih, “Analysis of factors forming CAMELS in banks listed on the Indonesia Stock Exchange,”JMI, vol. 15, no. 1, pp. 27–38, 2015.
SA Ross, “Financial Structure Determination: An Incentive Approach,”The Bell Journal of Economics, vol. 8, no. 1, p. 23, 1977, doi: 10.2307/3003485.
T. Handono, “Analysis of the Influence of Financial Ratios on Individual Stock Price Indexes (Case Study of the Eight Largest Banks),” Thesis, Faculty of Economics Master of Planning and Public Policy Program, University of Indonesia, Jakarta, 2011.
R. Purwasih, “The Effect of Camel Ratio on Changes in Stock Prices of Publicly Listed Banking Companies on the Indonesia Stock Exchange (IDX) in 2006-2008,” Thesis, Faculty of Economics, Diponegoro University, Semarang, Indonesia, 2010.
R. Ang, “Smart Guide to Indonesian Capital Market,” Mediasoft Indonesia, 1997.
Spence, M. 1978. Job Market Signaling. In Uncertainty in Economics. Elsevier: 281–306. https://linkinghub.elsevier.com/retrieve/pii/B9780122148507500255 22 January 2025
S. Husnan and E. Pudjiastuti,Fundamentals of Portfolio Theory and Securities Analysis. Yogyakarta, Indonesia: UPP AMP YKPN, 1998.
Mr. Samsul,Capital Markets and Portfolio Management. Jakarta: Erlangga, 2006.
J. Hartono and D. Ratnaningsih, “Mechanisms and factors influencing the explanation of agency costs on dividend payments,”Gadjah Mada International Journal of Business, vol. 5, no. 2, p. 145–166, 2003.
RAG Atgesa, “The Impact of Performance onon State-Owned Banking Profitability in 2014-2018,” Thesis, Faculty of Economics and Business, Brawijaya University, Malang, 2018.
D. Siamat,Financial Institution Management: Monetary and Banking Policy., 5th edition. Jakarta: Faculty of Economics Publishing Institute, University of Indonesia, 2005.
N. Takarini and UH Putra, “The Impact of Bank Health Level on Stock Price Changes in Banking Companies That Go Public on the Indonesia Stock Exchange (ISE),”Journal of Economic and Business Research, vol. 10, no. 2, 2010.
PP Rahmi, AN Aryanti, BS Purnomo, and I. Purnamasari, “Analysis of return on assets (ROA) and economic value add (EVA) in assessing financial performance,”Journal of Management, vol. 14, no. 4, pp. 836–843, 2022.
A. Magoma, H. Mbwambo, A. A. Sallwa, and N. Mwasha, “Commercial bank financial performance and the Camel model. The case of the National Microfinance Bank and the Cooperative Rural Development Bank in Tanzania,” inCBE BEDC Proceedings, Dodoma, Tanzania: CBE BEDC Proceedings, November 2021.
RK Shrestha and B. Gnawali, “Camel model and financial performance of commercial banks in Nepal,”SEIKO: Journal of Management & Business, vol. 5, no. 2, p. 670–680, 2022, doi: https://doi.org/10.37531/sejaman.v5i2.3651.
B. Johnson and L.B. Christensen,Educational research: quantitative, qualitative and mixed approaches, Seventh Edition. Los Angeles: SAGE, 2020.
JW Creswell and JD Creswell,Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, Fifth Edition. Los Angeles: SAGE, 2018.
I. Kayani and H. Hakiman, “Determinants of Bank Performance through Camel Ratio, Digitalization, and Bank Size,”devotion, vol. 4, no. 10, p. 1938–1948, October 2023, doi: 10.59188/devotion.v4i10.573.
H. Widjaja and Moch. D. Ariefianto, “Dynamics of banking stock prices and their fundamentals: Evidence from Indonesia,”Cogent Economics & Finance, vol. 10, no. 1, p. 2107766, December 2022, doi: 10.1080/23322039.2022.2107766.
LO Onyiriuba,Emerging market bank lending and credit risk management: evolving strategies to reduce credit risk, optimize loan portfolios, and screen for problem loans. Amsterdam; San Diego, California: Academic Press, 2016.
OA Ogunode, OA Awoniyi, and AT Ajibade, “Capital adequacy and non-financial firm performance: Empirical evidence from Nigeria,”Cogent Business & Management, vol. 9, no. 1, p. 2156089, December 2022, doi: 10.1080/23311975.2022.2156089.
DR Kusumaningrum and I. Iramani, “The Effect of Financial Performance on Stock Prices with Return on Assets as an Intervening Variable on State-Owned Banks in Indonesia,”IJMMU, vol. 7, no. 2, p. 321, March. 2020, doi: 10.18415/ijmmu.v7i2.1485.
C. Indra Wahyu Putra, “The Effect of Non Performing Loans, Internal Rate of Return, Capital Adequacy Ratio and XYZ Bank Stock Price on XYZ Bank Performance,”GIJEA, vol. 2, no. 3, p. 237–249, Sept. 2024, doi: 10.38035/gijea.v2i3.223.
R. Arhinful and M. Radmehr, “The Impact of Financial Leverage on the Financial Performance of Companies Listed on the Tokyo Stock Exchange,”Sage Open, vol. 13, no. 4, p. 21582440231204099, October 2023, doi: 10.1177/21582440231204099.
A. Purwati and S. Mareta, “The Effect of Return on Risk Assets (RORA), Loan To Deposit Ratio (LDR) and Capital Adequacy Ratio (CAR) on Stock Prices (Empirical Study on Banking Sector Companies on the Indonesia Stock Exchange 2020-2023),”JAFM, vol. 5, no. 5, p. 1100–1108, December 2024, doi: https://doi.org/10.38035/jafm.v5i5.
A. Arasy, “Analysis of Factors Affecting Company Value (Case Study of Banking Companies for the Period 2015-2019),” Thesis, Indonesian College of Economics Jakarta, Jakarta, Indonesia, 2020.
Maryyam Anwaar, “The Impact of Firm Performance on Stock Returns (Evidence from Companies Listed on the FTSE-100 Index London, UK),”GJMBR, vol. 16, no. D1, pp. 43–51, January 2016.
Q. Akhtar and S. Nosheen, “The impact of fintech and banking M&A on acquirer performance: Strategic win or loss?,”Istanbul Stock Exchange Review, vol. 22, no. 6, p. 1195–1208, November 2022, doi: 10.1016/j.bir.2022.08.007.
S. Huang and H. Liu, “The impact of COVID-19 on stock price crash risk: Evidence from Chinese energy companies,”Energy Economics, vol. 101, p. 105431, September 2021, doi: 10.1016/j.eneco.2021.105431.
A. Fernandez-Perez, A. Gilbert, I. Indriawan, and N.H. Nguyen, “The COVID-19 pandemic and stock market responses: Cultural effects,”Journal of Behavioral and Experimental Finance, vol. 29, p. 100454, March 2021, doi: 10.1016/j.jbef.2020.100454.
A. Alshaikhmubarek, N. Kulendran, and L. Seelanatha, “The Impact of COVID-19 on Stock Returns and Firm Characteristics in the Saudi Stock Market,”Cogent Economics & Finance, vol. 12, no. 1, p. 2295754, December 2024, doi: 10.1080/23322039.2023.2295754.
A. Kordestani, N. Pashkevich, P. Oghazi, M. Sharekhadam, and V. Sohrabpour, “The impact of the COVID-19 pandemic on the stock price performance of blockchain-based companies,”Economic Research-Ekonomska Istraživanja, vol. 35, no. 1, p. 3206–3224, December 2022, doi: 10.1080/1331677X.2021.1986676.
NN Marpaung and IRD Pangestuti, “Macroeconomic Factors and the Jakarta Stock Exchange: Comparative Analysis Before and Until the COVID-19 Pandemic,”Sage Open, vol. 14, no. 2, p. 21582440241247894, April 2024, doi: 10.1177/21582440241247894.
Intan Elita*, K. Bagus Wardianto, M. Iqbal Harori, "Analysis of Stock Movements in Pharmaceutical Sub-Sector Companies Using Bollinger Band Indicators Amidst the COVID-19 Pandemic", Journal of Business Perspectives, Volume 3, Number 2, pp. 77-88, November 2020.
Suripto, Arif Sugiono and Havid Dasuki (2023). Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations. Banks and Bank Systems, 18(3), 192-204. doi:10.21511/bbs.18(3).2023.16