Abstract
The purpose of this study was to analyze the effect of capital structure proxy for debt to asset ratio (DAR) and the debt to equity ratio (DER), company size and profitability are proxied by return on assets (ROA), return on equity (ROE) and net profit margin (NPM) to the stock price on the company's Food and Beverage listed on the Indonesia Stock Exchange. This study uses Associative approach. The population in this study is the Food and Beverage companies listed in Indonesia Stock Exchange year period 2011 to 2014. Sampling method used is purposive sampling and the amount of samples obtained is 11 companies with 44 observations. Hypotheses were tested using multiple regression analysis. Results of the study were 1) capital structure proxy for debt to asset ratio (DAR) significant negative effect on stock prices, this means that if a decline in the value of DAR, the stock price will rise, 2) capital structure proxy for debt to equity ratio (DER) significant positive effect on stock prices, it means that the higher the value of DER then be followed by a decrease in stock prices, 3) The company size significant positive effect on stock prices, this suggests that the relationship between the SIZE with stock prices in the same direction, if SIZE increases, the stock price will increase, 4) profitability is proxied by return on assets (ROA) significant positive effect on stock prices, this means that the assets of the company to make a profit can affect stock prices, 5) profitability proxied with a return on equity (ROE) significant negative effect, this means that if a decline in ROE it will be followed by a decrease in stock prices, and 6) Profitability which is proxied by net profit margin (NPM) significant negative effect on stock prices, this means that while the net profit increased, the total sales will rise this is due to the high costs incurred by the company so that NPM has no effect on stock prices.
Highlights
The stock price of a company reflects the company's value in the investors, if a company's stock price high, the value of the company in the investors is good and vice versa, the share price is important for the company (Purnomo, 2008)
Based on the description that has been said, the main problem in this study is whether the capital structure proxy for debt to asset ratio (DAR) and the debt to equity ratio (DER), company size and profitability are proxied by return on assets (ROA), return on equity (ROE) and net profit margin (NPM) affect the price of shares in the company Food and Beverage listed on the Indonesia Stock Exchange
From these calculations can be seen that the most dominant variable influence on stock prices at the Food and Beverage listed on the Indonesia Stock Exchange is a variable return on assets (X4), because the value of Standardized Coefficients Beta ROA is greater than the variable debt to asset ratio (X1), debt to equity ratio (X2), size (X3), return on equity (X5) and net profit margin (X6)
Summary
The stock price of a company reflects the company's value in the investors, if a company's stock price high, the value of the company in the investors is good and vice versa, the share price is important for the company (Purnomo, 2008). If the financial performance of the company increased indirectly will raise the price of shares on the Stock Exchange, as investors assume that the good performance of the company will increase the value of the company and can provide compensation to investors in the form of dividends. Many variables can affect a company's stock price, both coming from the external environment or the advent of the internal environment of the company itself (Suad, 2008). Researchers used the company's internal variables namely financial ratios and the size of the company that could affect the stock price. Consideration is used investors in shares is the size of the company, as variables that can predict changes in the company's stock price
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