International Journal of Economics and Financial Issues ISSN: 2146-4138 available at http: www.econjournals.com International Journal of Economics and Financial Issues, 2019, 9(2), 110-114. International Journal of Economics and Financial Issues | Vol 9 • Issue 2 • 2019 110 Determinants of Return on Assets and Implications on Stock Price Changes Level Yani Riyani*, Kartawati Mardiah, Linda Suherma Politeknik Negeri Pontianak, Indonesia. *Email: yaniriyani@gmail.com Received: 27 December 2018 Accepted: 28 February 2019 DOI: https://doi.org/10.32479/ijef.7616 ABSTRACT This study aims to determine the effect of loan to deposit ratio (LDR) and non-performing loans (NPL) on return on assets (ROA) and Implications for stock price rate of change using SPSS 16.0 statistical software. In this study, there are 4 variables: LDR and NPL as independent variables (X1 and X2) and ROA s and Stock Price Rate of Change as a dependent variable (Y) and (Z). The research method used is a causal associative method that aims to determine the relationship between two or more variables. Effect of LDR, NPL to ROAs. Based on the results of SPSS processing, it can be concluded that the infuence of LDR and NPL to levels not signifcantly change in the stock price. While the level of stock price changes is infuenced by the LDR and NPL amounted to 2.10% while the remaining 97.90% is infuenced by other factors. Keywords: Loan to Deposit Ratio, Non Performing Loan, Return on Assets, Stock Price JEL Classifcations: G32, G38, G28 1. INTRODUCTION The ability of a company to generate profts in its operations is a major focus on the company’s performance appraisal; because of the profts the company will be able to known to the company’s ability to fulfll obligations to its investors and also an important element in the creation of corporate value that shows its prospects in the future. The level of corporate proftability can be seen from the fnancial statements that are periodically updated as one of the obligations to public companies listed on the Indonesia stock exchange. The fnancial statements provide raw data onto fgures that can be further analyzed. The level of corporate proftability on fundamental analysis is usually measured from several aspects, in public companies listed on the Indonesia Stock Exchange, the fnancial ratios often used in analyzing stock price changes are loan to deposit ratio (LDR), non performing loan (NPL) and return on assets (ROA). Then the value of the fnancial ratios can be used as the basis of assessment/ eligibility from determining the portfolio policy of investors. In connection with the above issues, the authors propose a thesis with the subject of the discussion entitled “analysis of the effect of LDR and NPL on ROA and its implication on stock price change rate (case study at the banks listed in indonesia stock exchange period 2016-2017).” The purpose of this study is as follows: a. To know the effect of LDR and NPL simultaneously affect ROA at banks listed in Indonesia stock exchange period 2016-2017. b. To know the effect of ROAs to the rate of change of stock price at banks listed in stock exchange Indonesia period 2016-2017. c. To know the effect of LDR and NPL jointly affect the rate of change of share price at banks listed in Indonesia stock exchange period 2016-2017. 2. LITERATURE REVIEW From several studies there are several variables that affect the ROA and Level of Stock Price Changes, which have been summarized as follows in Table 1. This Journal is licensed under a Creative Commons Attribution 4.0 International License