The Effects of Inflation, Profitability, and Sales Growth on Stock Prices in Retail Trade Sub-Sector Companies (2014-2019 Period)

Abstract

The purpose of the research is to determine the effect of Inflation, Profitability, Sales Growth partially or simultaneously on stock prices, and the development of each variable for the 2014-2019 period. The research method used are descriptive and verification analysis with quantitative approaches. The research data used is secondary data which includes data for each variables. Purposive-sampling technique is used for the sampling process. Six Retail Trade sub-sector companies were selected as research samples based on predetermined criteria. Correlation and determination analysis were used in this study, while hypothesis testing was carried out using the T-test and F-test methods. The results of the research indicate that inflation partially has a significant effect on stock prices, while profitability and sales growth have no significant positive effect on stock prices. Thus, it can be concluded that Inflation, Profitability and Sales Growth show their influences on Stock Prices simultaneously