THE EFFECT OF ALTMAN Z – SCORE FINANCIAL RATIO ON STOCK PRICE (STUDY ON GO PUBLIC PLANTATION SUBSECTOR COMPANIES IN INDONESIA STOCK EXCHANGE)

Muhammad Fachri Radityatama,Matrodji H Mustafa

doi:10.31933/dijdbm.v1i1.89

Muhammad Fachri Radityatama, Matrodji H Mustafa

Open Access

https://doi.org/10.31933/dijdbm.v1i1.89

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Abstract

This study aims to examine and analyze the effect of the ratio - financial ratios Altman Z-Score on stock prices (study at the plantation subsector company that went public on the stock exchanges of Indonesia). The research data is annual data from 2014 until 2018. The sampling method used was purposive sampling. Of the population of 16 companies in the plantation subsector, 15 companies met the criteria plantation sub-sector into the sample. The analytical method used in this study is panel data regression. The results showed Working Capital to Total Assets (WCTA), Retained Earnings to Total Assets (RETA), Earnings Before Interest and Tax (EBITTA) and Market Value Equity to Book Value of Total Liabilites (MVEBTL) together - the same (simultaneous) effect significant positive stock price

Highlights

Indonesia is an agricultural country, where most people are farmers that, even the Indonesian plantation crops can carry the Indonesian economy
Based on table 2 it can be concluded that the regression models based on those common effect MVEBTL ratios yield significant results is less than 0.05, which means a positive effect on stock prices, while the ratio of Working Capital to Total Assets (WCTA), Retained Earnings to Total Assets (RETA), and EBITTA, has a value of more than 0.05, which means that the ratio the tdak effect on stock prices at the plantation sub-sector companies listed on the Indonesia stock Exchange period from 2014 until 2018
Based on table 9, test variables Working Capital to Total Assets (WCTA) on stock prices of companies in the plantation subsector that listed in Indonesia Stock Exchange (BEI) in the period from 2014 until 2018 resulted in a probability value of 0.8995 is greater than the level of significance is 0:05, this indicates that the variable Working Capital to Total Assets (WCTA) did not significantly influence the company's stock price in the plantation subsector that listed in Indonesia stock Exchange (BEI) in the period from 2014 until 2018

Summary

Introduction

Indonesia is an agricultural country, where most people are farmers that, even the Indonesian plantation crops can carry the Indonesian economy. It was submitted by Nurmayanti (2017) which states that plantations provide a very important role for the economic fundamentals of Indonesia and written by statements from Machmud (2017) which states that plantations play an important role as a driver of prosperity and development of remote wilaya. When viewed from the value of its stock price index, the plantation subsector decreased from 2017 until 2018. Index of stock prices in 2017 up to 2018 in the plantation sub-sector are as follows: Available Online: https://dinastipub.org/DIJDBM

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