This research examines the effect of liquidity risk, and credit risk to market value.
Liquidity risk, and credit risk are the risk that very close with banking, since one of
bank function is related on giving loans to its costumer. The research will examine how
the liquidity risk and credit risk will affect market value of the bank. In this research
the market value will be measured by its price to book value, and price to earning value.
The model used in this study is multi linear regression analysis. The sample are 13
banks that listed in Indonesia Stack Exchange (IDX) in 2005-2015. This study found
that the liquidity risk, and credit risk significantly affects the market value of the banks