Abstract

In this study, the factors to be researched are internal factors related to financial ratios such as market ratios namely Price Earnings Ratio, Leverage Ratio namely Debt to Equity Ratio, and Profitability Ratio namely Return on Assets (ROA) as variables that affect Stock Prices in real estate companies in Indonesia Stock Exchange. The data used are secondary data from time series that have been transformed from the Indonesia stock exchange. The method used is multiple regression with OLS, to find how much the influence of independent variables have as driving forces on stock prices. The results obtained from this study are price earnings ratio, debt to equity ratio, ROA simultaneously affect the stock prices of Real Estate companies in the Indonesian stock exchange. Meanwhile, partially, the three variables deserve to be the driving factor for share prices in real estate companies at the Indonesia Stock Exchange.

Highlights

  • According to Law Number 8 Year 1995, the Capital Market is an activity related to public offerings and securities trading, Public Companies related to the Securities it issues, as well as institutions and professions related to securities

  • Evidenced by the results of the t statistical test / partial test with a probability value of 0.0444 smaller than 0.05, the coefficient shown in front of the ROA variable is positive (+), the results above are in line with the results of research conducted by Gordon and Schmid (2000), which proves that Partially Return on Assets has a positive and significant effect on share prices in property sub-residence sector companies listing on the Indonesia Stock Exchange

  • Based on the results of data analysis discussion through proving the hypothesis of the issues raised regarding the factors that affect share prices in real estate companies in Indonesia Stock Exchange, the conclusions can be drawn from this study are as follows: 1) Variables Price Earnings Ratio (PER), DER and ROA simultaneously have significant effects on stock prices of real estate companies on Indonesia Stock Exchange

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Summary

Introduction

According to Law Number 8 Year 1995, the Capital Market is an activity related to public offerings and securities trading, Public Companies related to the Securities it issues, as well as institutions and professions related to securities. The need for information about making investment decisions in the capital market is needed by investors Conditions like this will directly affect capital market activity, lead to fluctuations in demand and supply of the number of shares on the stock exchange and have an impact on stock price changes, so this situation must always be watched out for by special investors for the property and real estate industry. Investors must pay attention to the factors that can affect share prices These factors are divided into two, namely internal factors and external factors. Internal factors such as company performance are reflected by the company's financial ratios External factors such as government policies and fluctuations in the rupiah exchange rate against foreign currencies. Mei Yu. (2013) Financial performance refers to a company’s ability to generate new resources from day-

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