Risk Analysis Of Banking Companies Listed On Indonesia Stock Exchange During Covid-19 2020

Septiana Mar’atus Sholikhah, Sudarto Sudarto, Intan Shaferi

Abstract


This article discusses the case of COVID-19 which has provided bad news for global financial markets, especially capital markets on the Indonesia Stock Exchange. Many companies are experiencing a drop in the share price experiencing risk. The risk faced by banking companies listed on the Indonesia Stock Exchange is a very drastic drop in the share price. This condition makes the banking company experience liquidity risk and credit risk. The purpose of this study is first to find out if there is a link between the number of COVID-19 cases and the share price. Secondly to find out if the bank is experiencing liquidity risk and credit risk during COVID-19.

 

The research method is secondary data analysis by conducting correlation testing and descriptive statistic. The sample was taken by 10 banking companies listed on the Indonesia Stock Exchange using pruposive sampeling or using criteria techniques. The practical contribution of this research is to find out if there is a relationship between the number of COVID-19 cases and the share price and can give the right decision in managing the risks that occur. In addition, banking companies can provide information related to the condition of the company during the economic crisis.

 

Keywords : Liquidity Risk; Credit Risk; Banking; Capital Market; COVID-19


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References


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