Financial Performance with Interest Rate as a Moderating Variable on Stock Returns

This study aims to analyze the effect of financial performance as measured using the Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL) on stock returns with interest rates as a moderating variable in commercial banks listed on the Indonesia Stock Exchange for the 2019 -2024 period. The data used is quantitative, derived from the company's financial statements and related macroeconomic data. The research population is banking sector listed on the IDX for the 2019-2024 period, with the sample selected using purposive sampling method. Data were analyzed using multiple linear regression and Moderated Regression Analysis (MRA). The results showed that CAR has a significant positive effect on stock returns, LDR has no significant effect on stock returns, and NPL has a significant negative effect on stock returns. Interest rates proved to moderate the relationship between CAR and NPL on stock returns, but did not moderate the relationship between LDR on stock returns. The research implications emphasize the importance of capital management and asset quality in improving the performance of banking stocks, as well as the need for consideration of macroeconomic factors such as interest rates in making investment decisions.