THE EFFECT OF FINANCIAL PERFORMANCE AND TECHNOLOGY ASPECTS ON MARKET PERFORMANCES ON BANKING IN INDONESIA

Abstract

This study aims to analyze the effect of Financial Performance and Technological Aspects (Financial Technology) on Market Performance in banking companies in Indonesia which were listed on the Indonesia Stock Exchange in the 2014-2018 period. The sampling method used was purposive sampling, and there’s five banking companies that met the sample selection criteria during the 2014- 2019 period. The research data are secondary data obtained from the Indonesian Stock Exchange (www.idx.co.id), www.bi.go.id, www.ojk.go.id and the websites of each bank. Hypothesis testing using data analysis through partial Least Square (PLS) is done through two stages, namely: First, Assessing the outer model or measurement model. Second, assess the inner model or structural model. The results of this study indicate that Return On Assets (ROA) has a positive and significant effect on financial performance, operational efficiency ratio (BOPO) and Net Performing Loans (NPL) has a negative and significant impact on financial performance. On the other side, ATM transactions, Mobile Banking and Internet Banking have a positive and significant effect on technological aspects. Therefore, financial performance and financial technology have a significant positive that affect Market Performances. Submission.