Latest Issue
ISSN : 2456-3676

Title:
AN ANALYSIS OF FINANCIAL RATIO EFFECT ON STOCK PRICES ON MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE (IDX) 2014-2016 PERIOD

Authors:
Budiyono Budiyono, Rizal Satria Arlengga, Indonesia

Abstract:
This study aims to determine the effect of financial ratios to the price on the shares of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014-2016, either partially or simultaneously. Financial ratios studied include: earning per share (EPS), net profit margin (NPM), return on assets (ROA), and return on equity (ROE). The population in this study is a manufacturing company listed on the Indonesia Stock Exchange (IDX) in 2014-2016. The sample of research is 60 manufacturing companies obtained by purposive sampling technique. Data collection techniques used are documentation. Data analysis was done by multiple regression analysis technique. The results showed that partially EPS and ROA variables have a positive effect on stock prices, ROE has a negative effect on stock prices, while NPM has no effect on stock prices. Simultaneously variables EPS, NPM, ROA, and ROE effect on stock prices. EPS, NPM, ROA and ROE variables can explain the stock price variables in manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014-2016 of 87.7%.

PDF Download