Influence Stock Prices Research Articles

Volume and Frequency of Transactions that Influence Share Prices are Mediated by Financial Performance and Moderated by Dividend Policy

One of the benchmarks for a country's progress is the existence of the Capital Market. The capital market is a gathering place for public companies operating in both primary and secondary markets. The secondary market in the capital market is a preference for people and organizations to invest. Share prices are a consideration for investors in determining investment decisions. The online trading system in the capital market is considered an efficient step and makes it easier to accelerate transactions, both buying and selling. The impact of transaction speed allows transaction volume and frequency to increase. The increase in transaction volume and frequency can only be seen in terms of technical factors, but fundamental factors in investing in the capital market also need to be considered. In this study, the researcher tried to include financial performance as well as a moderating variable which is proxied by dividend policy which is thought to influence stock prices. The results of research model 1 show an R-squared value of 0.487204. This shows that transaction volume, transaction frequency and DPR contributed 48.72% to PBV, while the remaining 51.28% was the contribution of other variables besides the independent variables studied. Meanwhile, Model 2 shows an R-squared value of 0.956943. This shows that PBV, Transaction Volume, Transaction Frequency and DPR contribute to SP amounting to 95.69% while the remaining 4.31% is the contribution of other variables besides the independent variables studied.

Stock Reverberation Due to International Trade Related Economic Factors

The economic activities of a nation are measured through various macroeconomic factors such as GDP, EXIM rate, unemployment level, Wholesale Price Index (WPI), and Consumer Price Index (CPI). Numerous studies have focused on identifying the association between inflation and stock prices, with some also highlighting the relationship between gold prices and stock price volatility. This study uses exchange rate and balance of trade as indicators to predict stock price volatility in China. The stock price volatility is measured using the Shanghai Stock Exchange Composite Index (SSE Composite Index). An analytical method is employed to evaluate the involved variables, with Johansen integration used to determine the relationships between them. The Vector Error Correction Model (VECM) is utilized to model these relationships. The Granger causality test and Johansen co-integration test measure the causal relationships of economic variables on the stock market indices. The findings indicate that the exchange rate positively influences stock prices, whereas the balance of trade shows a negative relationship. The exchange rate Granger-causes stock prices, but the reverse is not true. A similar Granger-causing relationship exists between the balance of trade and stock prices. The study also reveals that while the exchange rate of RMB to USD may not have a strong impact on stock prices, the exchange rates of other currencies may significantly influence China's stock prices.

Examining Dividend Policy as a Mediating Variable in Stock Price Trends: Evidence from the Indonesian Basic Materials

This research investigates the impact of financial ratios, including profitability, liquidity and solvency, on stock prices, with dividend policy as a mediator, in the Indonesian raw materials sector. The analysis covers 100 samples from 25 of companies listed on the Indonesia Stock Exchange (BEI) from 2019 to 2022. The research aims to explore stock price fluctuation trends and examine the relationship between financial ratios and stock prices, as well as the role of dividends policy in mediating this relationship. The findings show that profitability and liquidity are important factors in determining stock prices, while solvency does not influence stock prices, nor does dividend policy play an important role in mediating the relationship between variables. It is hoped that these findings will provide insight for investors, policy makers and industry stakeholders in navigating Indonesia's dynamic construction materials market.

The Influence Of Financial Performance On Stock Prices In Food And Beverage Sub-Sector Companies On The Indonesian Stock Exchange

This research was created to find out how financial performance influences share prices in food and beverage sub-sector companies listed on the Indonesian Stock Exchange for the 2018-2022 period. The approach taken is a quantitative approach. Meanwhile, the type of data used in this research is quantitative data in the form of annual financial reports from 2018 to 2022. The sample used was 22 manufacturing companies listed on the Indonesia Stock Exchange. Data analysis techniques in this research use descriptive statistics, classical assumption tests, multiple linear regression, t test, F test and coefficient of determination. Data management in this research uses the SPSS version 26 software program. The results of this research prove that partial Return on Assets has a significant effect on stock prices. Meanwhile, Current Ratio, Debt to equity ratio and Total Asset Turnover do not have a significant effect on share prices. Simultaneously shows that the Current Ratio, Debt to equity ratio, Return on Assets and total Asset Turnover together influence stock prices.

Sustainability Reporting : Moderating The Impact of Financial Performance on Stock Price

This study aims to examine the influence of financial performance on stock prices with sustainability reports as a moderating variable. Financial performance is measured through four categories. Sustainability reports are measured using the GRI-G4 index. The research population includes 27 palm oil industry companies listed on the Indonesia Stock Exchange. The research sample consists of 17 palm oil industry companies that consecutively disclosed annual reports, financial reports, and sustainability reports from 2018 to 2022, using purposive sampling. The data analysis method in this study involves panel data regression and Moderated Regression Analysis (MRA) using Eviews 12 software. The test results indicate that earnings per share and net profit margin have a significant impact on stock prices. However, the current ratio and debt-to-equity ratio do not influence stock prices. Meanwhile, sustainability reports can moderate the impact of earnings per share, net profit margin, and current ratio on stock prices but cannot moderate the impact of the debt-to-equity ratio on stock prices.

PENGARUH RETURN ON ASSET DAN DEBT TO EQUITY RATIO TERHADAP HARGA SAHAM KONTRUKSI PERUSAHAAN BUMN KHUSUS PADA PT ADHI KARYA (PERSERO) TBK

This study intends to ascertain the impact of debt to equity ratio and return on assets on the share prices of state-owned construction companies, with a focus on PT Adhi Karya (Persero) Tbk, over the years 2014–2022. The Indonesia Stock Exchange website (www.web.idx.com) and the PT Adhi Karya (Persero) Tbk website provide the data for the quantitative method, which is processed using SPSS soft ware. Based on the research findings, it can be inferred that the variable Return On Assets (X1) partially influences stock prices (Y) with a tcount of 3.270 > ttable 2.447 and a significant value of 0.017 < 0.05. It can be inferred that the Debt to Equity Ratio (X2) variable partially has no significant effect on Share Prices (Y) based on the DER variable's tcount of 1.206 < ttable 2.447 with a significant value of 0.273 > 0.05. Furthermore, the F test findings showed that the ROA and DER variables jointly had a considerable impact on stock prices, with an Fcount value of 5.458 > Ftable 5.14 and a significant value of 0.045 < 0.05. Consequently, the construction share price of the BUMN company, namely PT Adhi Karya (Persero) Tbk, is significantly impacted by both the Return on Asset (X1) and Debt to Equity Ratio (X2) variables at the same time.

The Impact of Capital Reduction Announcements on Stock Prices

This study employs a rigorous research methodology, including event study methodology and multiple regression analysis. We examined domestic listed and OTC companies from January 1, 2011, to December 31, 2023. The event study methodology allowed us to analyze the impact of capital reduction announcements on stock prices. At the same time, the multiple regression analysis helped us to identify the factors influencing cumulative abnormal returns (CAR). The empirical results are as follows: Capital reduction announcements lead to positive cumulative abnormal returns on stock prices. Return on equity (ROE) significantly impacts the effect of capital reduction announcements. Firms with stable ROE instill greater investor confidence, positively influencing stock prices. The debt and cash flow ratios positively and significantly affect the impact of capital reduction announcements. Additionally, firm size positively and significantly impacts capital reduction announcements. This paper contributes by revealing the positive impact of capital reduction announcements on stock prices and confirming the significant roles of return on equity, debt ratio, cash flow ratio, and firm size in this effect. These findings are crucial for investors and financial professionals as they provide insights into the factors that can influence stock prices and help make informed investment decisions.

DO GREEN ACCOUNTING AND CARBON EMISSION DISCLOSURE AFFECT STOCK RETURN?

Environmental issues such as climate change can be an external factor that influences stock price fluctuations and stock returns. This research aims to analyze the impact of carbon emission disclosure, green accounting practices, and profitability on the share returns of food and beverage sector companies listed on the Indonesia Stock Exchange during the period 2020 to 2022. This research uses a quantitative approach, multiple linear regression analysis methods, and a sample of 54 companies. The results of this study indicate that profitability has a significant impact on stock returns. However, carbon emission disclosure and green accounting do not significantly impact stock returns. The results of this research can be a reference for companies and investors who want to pay closer attention to environmental conditions.

Does population ageing affect financial market stability? Evidence from firm-level stock price crash risk

ABSTRACT We investigated the effect of population ageing on financial market stability. Using Chinese A-share listed firms in 2007–2021, we found that firms in regions experiencing greater population ageing have higher stock price crash risk. It can be attributed to the supply-side effect of labour and capital due to population ageing, which leads to fluctuations in firm performance and earnings manipulation. Our study enhances the understanding of how macroeconomics influences stock price crash risk and provides valuable insights for investors in ageing societies like China.

Do Internal Corporate Governance Practices Influence Stock Price Volatility? Evidence from Egyptian Non-Financial Firms

The objective of this research paper is to investigate the association between internal Corporate Governance (CG) mechanisms and stock price volatility in Egypt as an emerging market. The paper investigates the impact of ownership structure and board structure as internal CG mechanisms on stock price volatility. Data are analyzed using a two-way fixed effects model, a one-step dynamic panel data model, and a panel weighted least squares model. The study concluded that ownership concentration has a negative influence on volatility. Interestingly, an inverted U-shaped relationship between the percentage of ownership by the greatest shareholder and volatility is evidenced. Managerial ownership also showed a negative influence on volatility. As for board structure mechanisms, the findings show that both board size and frequency of board meetings negatively influence volatility, whereas board independence has a positive impact.

The Influence of Capital Structure, Company Growth and Company Value on Share Prices in Coal Sub-Sector Companies Listed on the Indonesian Stock Exchange 2018-2023

This study aims to empirically investigate the impact of Capital Structure, Company Growth, and Company Value on stock prices. Employing a quantitative descriptive research method with a verificative approach, the study utilizes panel data regression analysis to examine these relationships. The research focuses on Coal Sub-Sector Companies listed on the Indonesia Stock Exchange from 2018 to 2023, encompassing a sample of 12 companies. The findings reveal that Capital Structure negatively influences stock prices, indicating that higher debt levels may detract from stock value. Conversely, Company Growth is found to have no significant effect on stock prices, suggesting that growth metrics do not necessarily translate to market valuation in this sector. In contrast, Company Value exerts a positive impact on stock prices, demonstrating that higher valuation metrics are associated with increased stock prices. These results provide valuable insights for investors and stakeholders in the coal sub-sector, highlighting the critical factors that drive stock price movements and offering a basis for more informed investment decisions.

ARIMA-GARCH MODEL IN OVERCOMING HETEROSCHEDSDATICITY IN STOCK PRICE PREDICTION (CASE STUDY: PT INDOFOOD, TBK (INDF))

Ensuring access to future stock price information holds significant weight for investors in formulating investment strategies. The Indonesian capital market serves pivotal economic and financial roles within the economy, offering various instruments, such as stocks. Among these, blue-chip stocks are recognized for their minimal risk exposure. The impact of the COVID-19 pandemic is anticipated to influence stock price dynamics, including those of blue-chip stocks. Statistical methodologies, such as Autoregressive Integrated Moving Average (ARIMA), are commonly utilized for stock price prediction. However, the efficacy of ARIMA is contingent upon the fulfillment of homoscedasticity assumptions. Failure to meet this assumption due to fluctuating stock price developments poses a challenge. Consequently, an ARIMA-GARCH hybrid model has been developed to address heteroskedasticity concerns in stock price forecasting. This study focuses on INDF stock data, exemplifying a blue-chip stock with positive performance. Results indicate that combining ARIMA-GARCH models, particularly the ARIMA(0,1,3)-GARCH(1,3) model, yields optimal predictions for subsequent stock prices. The MAPE value of the ARIMA-GARCH model stands at 1.41%, indicating superior performance compared to standalone ARIMA modeling. These findings are expected to serve as a valuable resource for investors navigating investment decisions.

Firm-specific investor sentiment and stock price informativeness

This paper investigates the influence of firm-specific investor sentiment on stock price informativeness in China. Using a composite firm-specific investor sentiment index, we find that sentiment positively influences stock price synchronicity and future price crash risk for opaque stocks. We use firm-specific investor sentiment proxy to develop a market sentiment proxy, which could predict aggregate price synchronicity beyond extant market sentiment indicators. Our results suggest that the composite sentiment index is a reliable proxy and investor sentiment negatively affects price informativeness.

A LASSO-BASED ANALYSIS ON VALUE RELEVANCE OF ACCOUNTING INFORMATION IN THE BULGARIAN CAPITAL MARKET

The aim of this study is to examine the value relevance of accounting information, specifically the influence of accounting information on the share prices of non-financial public companies listed on the Bulgarian capital market. The data set contains twenty accounting variables and the stock prices of twenty public Bulgarian companies. The analysed period is 01.01.2015 – 31.12.2022. Descriptive statistics and Least Absolute Shrinkage and Selection Operator (LASSO) regression model are applied. The empirical analysis results show that accounting information affects share prices of the examined companies from 2015 to 2022. Addionally, LASSO regression model is an appropriate model for identifying significant accounting information variables that influence stock prices. The findings of the study offer practical implications for various stakeholders, including investors, policymakers, and financial analysts.

Impact of investor trust on public firms’ stock price efficiency and cost of capital: Insights from a firm-level measure for investor trust

Although studies have suggested that investor trust positively influences stock price efficiency and subsequently reduces the cost of capital for public firms, few studies have employed a direct firm-level measure of investor trust to offer empirical support for this proposition. Because stock prices are more efficient surrounding earnings announcements, we construct this measure by examining how prices change when unexpected earnings reports are provided. Using US market data from 1990 to 2019 to determine how strongly investor trust affects public firms’ stock price efficiency and cost of capital, we find that stock prices of firms with higher investor trust reflect market news more efficiently and predict earnings more accurately. Furthermore, our results suggest that companies trusted more by investors can raise money more cheaply. Collectively, our findings underscore the importance of fostering investor trust as a means of enhancing stock price efficiency and reducing the cost of capital.

Price to Book Value Drives Stock Prices in Indonesia, While DER and PER Falter

This study examines the impact of the Debt to Equity Ratio (DER), Price to Book Value (PBV), and Price Earning Ratio (PER) on stock prices of food and beverage companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2018. Using secondary data from financial reports and statistical analysis via SPSS 23, the research found that DER does not significantly affect stock prices, PBV positively influences stock prices, and PER has no significant impact. These findings suggest that investors prioritize market confidence and financial prospects (as indicated by PBV) over debt levels and earnings ratios when making investment decisions in this sector. Highlights: 1. DER Impact: Debt to Equity Ratio does not affect stock prices significantly.2. PBV Significance: Price to Book Value positively influences stock prices.3. PER Irrelevance: Price Earning Ratio does not impact stock prices significantly. Keywords: Debt to Equity Ratio, Price to Book Value, Price Earning Ratio, Stock Prices, Indonesia Stock Exchange

Pengaruh Profitabilitas dan Ukuran Perusahaan terhadap Harga Saham pada Perusahaan Sub Sektor Transportasi yang Terdaftar di Bursa Efek Indonesia (BEI)

Pengaruh Profitabilitas dan Ukuran Perusahaan terhadap Harga Saham pada Perusahaan Sub Sektor Transportasi yang Terdaftar di Bursa Efek Indonesia (BEI)

The Evaluation of Impacts of Multi Factor Model on TTC Stock Price: a Case in Real Estate Industry in Vietnam

Objectives: The objective of this study is to analyze the impact of macroeconomic factors on the stock price of a real estate firm, specifically Thanh Cong TCC, in Vietnam from 2014 to 2020. The study aims to assess both positive and negative influences of five macroeconomic variables on stock prices and to understand the overall business health reflected by stock fluctuations. Methods: This study utilizes a data collection method involving statistics, analysis, synthesis, comparison, and quantitative analysis to generate qualitative comments and discussion. Econometric methods, particularly regression analysis, are employed to evaluate the quantitative results and assess the impact of macroeconomic factors on stock prices. Results: The quantitative research reveals several key findings. Firstly, the stock price of Thanh Cong TCC (Y) exhibits a negative correlation with the lending rate (R) and GDP growth, indicating that higher lending rates and lower GDP growth negatively impact stock prices. Conversely, there is a positive correlation between stock prices and the risk-free rate (Rf), consumer price index (CPI), and VNINDEX, suggesting that these factors positively influence stock prices. Furthermore, the study identifies GDP growth and lending rates as having the highest impact on firm stock prices. Conclusion: In conclusion, this study highlights the importance of considering macroeconomic factors in understanding stock price fluctuations in real estate firms in developing countries like Vietnam. The findings emphasize the significant impact of lending rates and GDP growth on stock prices, indicating their pivotal role in shaping the business health and overall economic conditions. By recognizing these influences, firms like Thanh Cong TCC can better navigate market dynamics and make informed strategic decisions to enhance their performance and resilience in the face of macroeconomic challenges.

Stock liquidity and stock price crash risk: evidence from China

ABSTRACT This paper investigates how stock liquidity influences stock price crash risk using data from Chinese A-share listed companies between 2009 and 2018. Our findings show that enhanced liquidity increases stock price crash risk. This effect becomes more pronounced in firms with lower levels of information transparency and weaker external governance. Higher levels of management stock ownership and significant shareholdings by major shareholders also intensify the relationship between liquidity and the risk of stock price crashes. We explain for this phenomenon by short-termism and governance theory. Specifically, highly liquid stocks exert short-term pressure on management due to short-termism. To fulfil the profit expectations of short-term investors, management might resort to upward earnings management, and conceal bad news, thereby elevating the risk of stock price crashes. Governance theory argues that heightened liquidity facilitates the withdrawal of major shareholders upon bad news revelation, which intensifies the market reaction to bad news, potentially triggering additional stock selling and consequently elevating the risk of stock price crashes. Furthermore, our additional analysis reveals that liquidity exerts a more pronounced influence on crashes during a bull market than a bear market. And distinct property rights do not substantially alter the relationship between liquidity and crash risk.

EXPLORING THE IMPACT OF COMPANY SIZE AS A MODERATING VARIABLE ON STOCK PRICE DETERMINANTS

The research aims to analyze company size in relation to factors influencing stock prices. A fundamental analysis technique is utilized in the evaluation of share prices. Using a purposive sampling approach, the research determines the sample by analyzing the 2022 financial reports of Property and Real Estate. Moderated Regression Analysis (MRA) with Eviews software used to examine the impact of moderating. The results indicate that profitability and liquidity have a significant positive effect on stock prices, while capital structure has a significant negative effect. However, company size is unable to moderate the effects of profitability, liquidity, and capital structure on stock prices. After the Covid-19 pandemic, investors do not simultaneously consider financial performance and company size simultaneously in deciding to invest. This is due to the previous year's decline in Property and Real Estate sales, resulting in decreased company profits. This profit decrease may reduce company revenue, and pandemic conditions have led to increased company expenditures. When making an investment, this study might offer helpful information to take into account.