ANALYSIS OF FINANCIAL PERFORMANCE OF STOCKS ENTRY IN MINING AND BANKING SECTORS IN LQ45 INDEX

Abstract

Abstract: Every period of 6 months, LQ45 assessed the shareholder's companies listed inside. As an index of most traded stocks, the LQ45 Index is essential for the market and company. Mining and Banking sectors included in the Index are the most leading sectors for the market's cantilever, which relate to the country's economic condition. The movement of stocks from these two sectors are leads the Index, based on their financial performance of each company. This paper aims to analyze the performance of companies within their entry of stocks, distinctively for the mining and banking companies. This research examines the influence between the stock market and financial variables such as market capitalization, return on assets, debt to equity ratio, and operating profit margin. This research uses a quantitative method by taking secondary data from companies' financial reports. Secondary data is dated on the first course of 2017 to 2019. The result shows that the In/Out shares significantly affect each of the financial variables, except for the market capitalization.

Keywords: in/out shares, market capitalization, ROA, DER, OPM