The Effect of Financial Performance and Market Performance on the Stock Prices

  • Ulfa Rizki Indriyanti Universitas Islam Indonesia
  • Nurfauziah Nurfauziah Universitas Islam Indonesia
Keywords: Current ratio, debt to equity ratio, return on asset, return on equity, total asset turnover, earning per share, stock price

Abstract

This study aims to examine the effect of Current Ratio (CR), Debt to Equity Ratio (DER), Return on Asset (ROA), Return on Equity (ROE), Total Asset Turnover (TATO) dan Earning Per Share (EPS) on the stock prices of manufacturing
companies listed on the Indonesia Stock Exchange. The study object includes the entire industry associated with manufacturing companies. The data used in this study is secondary. The sampling was done by purposive sampling technique, i.e. by choosing samples based on the defined criteria, and 21 companies during the period of 2012-2016 were chosen as the samples. The method used in this study involves the descriptive statistics, classical assumption test, multiple linear regression, determination coefficient, and hypothesis test. The results show that
Current Ratio (CR), Return on Asset (ROA) and Earning Per Share (EPS) partially have a positive effect on stock prices. Meanwhile Total Asset Turnover (TATO) has a negative and insignificant effect on stock prices. Simultaneously, CR, DER, ROA, ROE, TATO, and EPS have a significant effect on stock prices.

 

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Published
2019-07-22
How to Cite
Indriyanti, U., & Nurfauziah, N. (2019). The Effect of Financial Performance and Market Performance on the Stock Prices. Asian Journal of Entrepreneurship and Family Business, 3(1), 65-79. Retrieved from http://perwiraindonesia.com/ajefb/index.php/jurnalAJEFB/article/view/38