THE ANALYSIS OF FINANCIAL RATIOS EFFECT ON THE STOCK PRICE OF CONSUMER GOODS SECTOR COMPANIES LISTED IN KOMPAS100 INDEX

Shabri Imansyah,Matrodji H Mustafa

doi:10.31933/dijdbm.v2i2.779

Abstract

This research aims to discern the effect of financial ratios on the stock price of Consumer Goods Industry Sector Companies listed in Kompas 100 Index on 2013-2019 period, partially or simultaneously. The financial ratios analyzed in this research are: Current Ratio (CR), Net Profit Margin (NPM), Return on Equity (ROE) and Dividend Yield (DY). The research population is the Consumer Goods Industry Sector Companies listed in Kompas 100 Index on 2013-2019 period. There are 5 Consumer Goods Industry companies used as the research sample by applying the purposive sampling method. This research uses documentation as the collection data technique as well as a panel data as the data analysis technique. This research shows that NPM variable has a partially positive relationship on the stock price, ROE has a positive relationship on the stock price at a confidence level of 90 percent, while CR and DY have no effects on stock price. The CR, NPM, ROE and DY variables influence the stock price simultaneously. CR, NOM, ROE and DY variables can explain the stock price on the Consumer Goods Industry Sector companies listed in Kompas 100 Index at 98,38%.

Highlights

Stock is one of the most favored financial market instruments
Based on the test results done in pair using Chow test, Hausman test and Lagrange Multiplier test on the method of panel data regression above, it is concluded that the Fixed Effect Model can be implemented to estimate and analyze the factors affecting the stock price in Consumer Goods Industry companies listed in KOMPAS 100 Index 2013-2019
Based on the result analysis of the hypothesis, it can be concluded that: 1. Current Ratio (CR) variable does not have significant effect on the stock price of Consumer Goods Industry Sector companies listed in KOMPAS 100 Index 2013-2019

Summary

Introduction

Stock is one of the most favored financial market instruments. Company issues stock as one of the options to finance the company itself. Most investors favor the stock as investment instrument as it is able to generate attractive rate of return. The stock in Consumer Goods Sector is still attractive among investors as it still has significant role in the economy of Indonesia. Consumer Goods Industry Sector is one of the sectors that support various industries in Indonesia. Statistics Indonesia (BPS) reported that the GDP percentage distribution of Consumer Goods Industry on Indonesia’s GPD increases annually

Objectives

Results

Discussion

Conclusion