The Effect of Internet Banking and Mobile Banking on Stock Prices through Indonesian Banking Financial Performance Listed on the Indonesia Stock Exchange
Introduction
In the current digital era, the use of technology in the financial sector is increasingly dominating, especially in the banking industry. The emergence of internet banking and mobile banking has revolutionized the way people manage their finances, making it easier and more convenient to access banking services from anywhere and at any time. However, the impact of these digital services on stock prices is still a topic of debate among researchers and investors. This study aims to analyze the effect of the use of internet banking and mobile banking on stock prices through Indonesian banking financial performance listed on the Indonesia Stock Exchange.
Background
The banking industry in Indonesia has undergone significant changes in recent years, driven by the increasing demand for digital banking services. Internet banking and mobile banking have become essential tools for banks to stay competitive in the market. However, the adoption of these digital services has been slow, and the impact on stock prices is still unclear. This study aims to fill this knowledge gap by analyzing the effect of internet banking and mobile banking on stock prices through Indonesian banking financial performance.
Methodology
This study used a quantitative approach, analyzing the data of seven banking companies listed on the Indonesia Stock Exchange. The analysis method used includes descriptive analysis and multiple linear regression. The dependent variable was stock prices, while the independent variables were internet banking, mobile banking, and financial performance.
Results
The results of this study showed that internet banking variables had a positive but not significant effect on stock prices. This indicates that although the use of internet banking develops, its impact on company stock prices is not strong enough to create significant changes. There are several factors that might explain this phenomenon. First, the public may not fully believe in digital services, so that a low level of adoption can hamper positive contributions to stock prices.
Conversely, the use of mobile banking shows a significant negative effect on stock prices. This may be due to the high operational costs in the implementation of mobile banking services that can affect company profitability. In an effort to offer mobile banking services, banks may have to spend large investments in cyber technology and security, which can reduce their short-term profits and result in a decrease in stock prices in the market.
Furthermore, the financial performance of banking companies was also analyzed in this study. The results show that financial performance has a positive but not significant impact on stock prices. This might indicate that investors do not only consider financial performance in their investment decisions; They may also be more influenced by other external factors such as macroeconomic conditions, government policies, and broader market sentiment.
Discussion
The results of this study have several implications for bank management and investors. First, the use of internet banking and mobile banking may not have a significant impact on stock prices, at least in the short term. This suggests that banks should focus on other areas of investment, such as improving their financial performance and reducing operational costs.
Second, the high operational costs of mobile banking services may be a major concern for banks. This may lead to a decrease in stock prices, as investors may be less confident in the company's ability to generate profits. Therefore, banks should carefully consider the costs and benefits of implementing mobile banking services.
Third, the financial performance of banking companies may not be the only factor that influences stock prices. Other external factors, such as macroeconomic conditions and government policies, may also play a significant role in determining stock prices. Therefore, investors should be aware of these factors when making investment decisions.
Conclusion
In conclusion, although there are developments in the use of banking technology, its effect on stock prices in the Indonesian capital market seems to be still limited. This shows the need for a more integrated strategy in utilizing digital services and optimizing financial performance to increase the attractiveness of the company's shares in the eyes of investors. By understanding the factors that influence this relationship, bank management can make better decisions related to investment in their technology and operations, so as to provide greater added value for stakeholders.
Recommendations
Based on the findings of this study, the following recommendations are made:
Banks should focus on improving their financial performance and reducing operational costs, rather than investing heavily in internet banking and mobile banking services.
Banks should carefully consider the costs and benefits of implementing mobile banking services, and should not invest in this area unless it is cost-effective.
Investors should be aware of the external factors that influence stock prices, such as macroeconomic conditions and government policies, when making investment decisions.
Bank management should make better decisions related to investment in their technology and operations, so as to provide greater added value for stakeholders.
Limitations
This study has several limitations. First, the sample size was limited to seven banking companies, which may not be representative of the entire banking industry in Indonesia. Second, the study only analyzed the effect of internet banking and mobile banking on stock prices, and did not consider other factors that may influence stock prices. Third, the study only used a quantitative approach, and did not consider the qualitative aspects of the relationship between internet banking, mobile banking, and stock prices.
Future Research Directions
This study has several implications for future research. First, future studies should consider the qualitative aspects of the relationship between internet banking, mobile banking, and stock prices. Second, future studies should analyze the effect of internet banking and mobile banking on stock prices in other countries, to see if the findings of this study are generalizable. Third, future studies should consider other factors that may influence stock prices, such as macroeconomic conditions and government policies.
References
[List of references cited in the study]
Appendix
[Appendix materials, such as tables, figures, and additional data]Frequently Asked Questions (FAQs) about the Effect of Internet Banking and Mobile Banking on Stock Prices
Q: What is the main objective of this study?
A: The main objective of this study is to analyze the effect of the use of internet banking and mobile banking on stock prices through Indonesian banking financial performance listed on the Indonesia Stock Exchange.
Q: What are the key findings of this study?
A: The key findings of this study are that internet banking variables have a positive but not significant effect on stock prices, while mobile banking shows a significant negative effect on stock prices. Additionally, financial performance has a positive but not significant impact on stock prices.
Q: What are the implications of this study for bank management?
A: The implications of this study for bank management are that they should focus on improving their financial performance and reducing operational costs, rather than investing heavily in internet banking and mobile banking services. They should also carefully consider the costs and benefits of implementing mobile banking services.
Q: What are the limitations of this study?
A: The limitations of this study are that the sample size was limited to seven banking companies, which may not be representative of the entire banking industry in Indonesia. Additionally, the study only analyzed the effect of internet banking and mobile banking on stock prices, and did not consider other factors that may influence stock prices.
Q: What are the future research directions based on this study?
A: The future research directions based on this study are to consider the qualitative aspects of the relationship between internet banking, mobile banking, and stock prices. Additionally, future studies should analyze the effect of internet banking and mobile banking on stock prices in other countries, to see if the findings of this study are generalizable.
Q: What are the practical implications of this study for investors?
A: The practical implications of this study for investors are that they should be aware of the external factors that influence stock prices, such as macroeconomic conditions and government policies, when making investment decisions. They should also consider the financial performance of banking companies and the costs and benefits of implementing mobile banking services.
Q: What are the recommendations of this study for bank management and investors?
A: The recommendations of this study for bank management and investors are to make better decisions related to investment in their technology and operations, so as to provide greater added value for stakeholders. They should also consider the costs and benefits of implementing mobile banking services and be aware of the external factors that influence stock prices.
Q: What are the potential applications of this study?
A: The potential applications of this study are in the fields of banking and finance, where it can be used to inform policy and decision-making. It can also be used in the fields of business and management, where it can be used to inform strategic decision-making.
Q: What are the potential limitations of applying the findings of this study?
A: The potential limitations of applying the findings of this study are that the study was conducted in a specific context (Indonesia) and may not be generalizable to other contexts. Additionally, the study only analyzed the effect of internet banking and mobile banking on stock prices, and did not consider other factors that may influence stock prices.
Q: What are the potential future research directions based on this study?
A: The potential future research directions based on this study are to consider the qualitative aspects of the relationship between internet banking, mobile banking, and stock prices. Additionally, future studies should analyze the effect of internet banking and mobile banking on stock prices in other countries, to see if the findings of this study are generalizable.
Q: What are the potential implications of this study for the banking industry?
A: The potential implications of this study for the banking industry are that it highlights the need for banks to focus on improving their financial performance and reducing operational costs, rather than investing heavily in internet banking and mobile banking services. It also highlights the need for banks to carefully consider the costs and benefits of implementing mobile banking services.
Q: What are the potential implications of this study for investors?
A: The potential implications of this study for investors are that it highlights the need for them to be aware of the external factors that influence stock prices, such as macroeconomic conditions and government policies, when making investment decisions. It also highlights the need for them to consider the financial performance of banking companies and the costs and benefits of implementing mobile banking services.