PERAN PROFITABILITAS DALAM MEMEDIASI PENGARUH STRUKTUR MODAL, LOAN TO DEPOSIT RATIO, NON PERFORMING LOAN, DAN UKURAN PERUSAHAAN TERHADAP HARGA SAHAM PADA BANK KONVENSIONAL YANG TERDAFTAR DI BEI TAHUN 2022-2024

Abstract

This study aims to examine the mediating role of profitability in the relationship between capital structure, the Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL), and firm size and stock prices of conventional banks listed on the Indonesia Stock Exchange (IDX) during 2022 – 2024 period. The study adopts a quantitative research approach using secondary data obtained from the annual financial statements and stock price data of conventional banking companies. The sample was selected through purposive sampling, yielding 29 conventional banks with a total of 87 data. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The findings indicate that capital structure, the Loan to Deposit Ratio (LDR), and Non Performing Loans (NPL) have negative and significant effects on profitability, whereas firm size has a positive and significant effect on profitability. Regarding stock prices, the Loan to Deposit Ratio has a negative and significant influence, while firm size and profitability have positive and significant influences. Meanwhile, capital structure and Non-Performing Loans do not have significant effects on stock prices. The mediation analysis further indicates that profitability significantly mediates the effects of capital structure, Non-Performing Loans, and firm size on stock prices, but does not mediate the effect of the Loan to Deposit Ratio on stock prices. These findings suggest that profitability plays a pivotal role in explaining the relationship between firms' internal characteristics and stock prices in the conventional banking sector. Therefore, banks should strengthen their profitability through effective management of capital structure, credit risk, and corporate assets to enhance firm value as reflected in their stock prices.