Fundamental and Technical Factors on Stock Prices in Pharmaceutical and Cosmetic Companies
Fundamental and Technical Factors on Stock Prices in Pharmaceutical and Cosmetic Companies
Author(s): Suyanto Suyanto, Julia Safitri, Arif Prasetya AdjiSubject(s): Economy, Micro-Economics, Financial Markets, Accounting - Business Administration
Published by: Институт по публични финанси
Keywords: earnings per share;agency theory;debt to equity ratio;
Summary/Abstract: In investing in the capital market, investors need accuracy in making decisions related to stocks. Accurate stock valuation can minimize the risk of being wrong in decision-making. Therefore, investors need to analyze conditions corporate finance for decision making in investing stock. To evaluate the company's financial condition, investors can do it by calculating the company's financial ratio, namely Earning Per Share (EPS), Debt to Equity Ratio (DER), and Return on Equity (ROE) and for determining the appropriate timing of the investor's transactions will also be considering technical factors such as the Rupiah exchange rate against the US Dollar, Inflation and Bank Indonesia Interest Rates. This study aims to determine the effect. Earnings Per Share, Debt to Equity Ratio, Return on Equity, Exchange Rates, Inflation, and Bank Interest Rates Indonesia to Stock Prices. The population in this study are Go-Public companies from the Pharmaceutical sub-sector and the cosmetics sub-sector household goods, which are listed on the Indonesia Stock Exchange as long as 2014-2019 period. The sample selection technique in this study is purposive sampling. Thirty-six companies were acquired which complied research sample criteria. This study uses secondary data analyzed by descriptive method and multiple linear regression tested with classical assumption experiments, T-Test and F-Test. The results showed that the test results: EPS had an effect significant and partially affect the share price., DER is not has a significant and partial effect on stock prices., ROE has a significant effect simultaneously and partially share price., Exchange rate has no significant effect simultaneously and partially has no effect on stock prices, inflation has no significant effect Simultaneously and partially it has no effect on stock prices. Tribe Interest has no significant effect simultaneously and partially not take effect.
Journal: Finance, Accounting and Business Analysis
- Issue Year: 3/2021
- Issue No: 1
- Page Range: 67-73
- Page Count: 6
- Language: English