Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks
Purpose: This study analyzes the impact of Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) on the stock prices of Islamic banking companies listed on the Indonesian Stock Exchange during the COVID-19 pandemic (2020–2021), aiming to understand how key financial metrics i...
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| Format: | Article |
| Language: | English |
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Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business
2025-05-01
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| Series: | Journal of Enterprise and Development |
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| Online Access: | https://journal.uinmataram.ac.id/index.php/jed/article/view/13166 |
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| author | Naili Rahmawati Rusman Azizoma Muhammad Muhajir Aminy Bintang Pratiwi Mohamed Saleem Ahamed Riyad Rooly |
| author_facet | Naili Rahmawati Rusman Azizoma Muhammad Muhajir Aminy Bintang Pratiwi Mohamed Saleem Ahamed Riyad Rooly |
| author_sort | Naili Rahmawati |
| collection | DOAJ |
| description |
Purpose: This study analyzes the impact of Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) on the stock prices of Islamic banking companies listed on the Indonesian Stock Exchange during the COVID-19 pandemic (2020–2021), aiming to understand how key financial metrics influence stock valuations during economic uncertainty.
Method: Using a quantitative approach, panel data regression analysis was conducted on a purposively selected sample of Islamic banking companies. The study assessed both individual and joint effects of ROA, ROE, and EPS on stock prices.
Result: The results reveal that ROA, ROE, and EPS significantly affect stock prices, both individually and collectively. This indicates that profitability and earnings performance remain critical to market valuation even during crisis periods.
Practical Implications for Economic Growth and Development: Findings offer practical value for investors and analysts using financial ratios to guide investment decisions. Bank managers can enhance shareholder value by improving these indicators, while policymakers may use the results to support the resilience of Islamic banking during economic disruptions.
Originality/Value: This study contributes to the limited research on Islamic banking performance in crisis contexts by highlighting the continued relevance of fundamental financial indicators in influencing stock prices during the COVID-19 pandemic in an emerging market setting.
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| format | Article |
| id | doaj-art-4b2209709c8f4f1e8558dc5859787f30 |
| institution | OA Journals |
| issn | 2715-3118 2685-8258 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business |
| record_format | Article |
| series | Journal of Enterprise and Development |
| spelling | doaj-art-4b2209709c8f4f1e8558dc5859787f302025-08-20T02:25:08ZengUniversitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and BusinessJournal of Enterprise and Development2715-31182685-82582025-05-017210.20414/jed.v7i2.13166Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic BanksNaili Rahmawati0Rusman Azizoma1Muhammad Muhajir Aminy2Bintang Pratiwi3Mohamed Saleem Ahamed Riyad Rooly4Universitas Islam Negeri Mataram, IndonesiaUniversitas Islam Negeri Mataram, IndonesiaUniversitas Islam Negeri Mataram, IndonesiaUniversitas Islam Negeri Mataram, IndonesiaSouth Eastern University of Sri Lanka, Sri Lanka Purpose: This study analyzes the impact of Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) on the stock prices of Islamic banking companies listed on the Indonesian Stock Exchange during the COVID-19 pandemic (2020–2021), aiming to understand how key financial metrics influence stock valuations during economic uncertainty. Method: Using a quantitative approach, panel data regression analysis was conducted on a purposively selected sample of Islamic banking companies. The study assessed both individual and joint effects of ROA, ROE, and EPS on stock prices. Result: The results reveal that ROA, ROE, and EPS significantly affect stock prices, both individually and collectively. This indicates that profitability and earnings performance remain critical to market valuation even during crisis periods. Practical Implications for Economic Growth and Development: Findings offer practical value for investors and analysts using financial ratios to guide investment decisions. Bank managers can enhance shareholder value by improving these indicators, while policymakers may use the results to support the resilience of Islamic banking during economic disruptions. Originality/Value: This study contributes to the limited research on Islamic banking performance in crisis contexts by highlighting the continued relevance of fundamental financial indicators in influencing stock prices during the COVID-19 pandemic in an emerging market setting. https://journal.uinmataram.ac.id/index.php/jed/article/view/13166Stock PricesIslamic BanksReturn on AssetReturn on EquityPanel Data Regression Analysis |
| spellingShingle | Naili Rahmawati Rusman Azizoma Muhammad Muhajir Aminy Bintang Pratiwi Mohamed Saleem Ahamed Riyad Rooly Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks Journal of Enterprise and Development Stock Prices Islamic Banks Return on Asset Return on Equity Panel Data Regression Analysis |
| title | Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks |
| title_full | Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks |
| title_fullStr | Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks |
| title_full_unstemmed | Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks |
| title_short | Nexus between Financial Performance and Stock Prices during the COVID-19: Evidence from Indonesian Islamic Banks |
| title_sort | nexus between financial performance and stock prices during the covid 19 evidence from indonesian islamic banks |
| topic | Stock Prices Islamic Banks Return on Asset Return on Equity Panel Data Regression Analysis |
| url | https://journal.uinmataram.ac.id/index.php/jed/article/view/13166 |
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