Determinant of Stock Price Manufacturing Company: Evidence From Indonesia

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 16 April 2020

Determinant of Stock Price Manufacturing Company: Evidence From Indonesia

Henny Medyawati, Muhamad Yunanto

Universitas Gunadarma, Indonesia

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10.31014/aior.1992.03.02.217

Pages: 524-535

Keywords: Stock Price, EPS, PBV, ROE, Panel Regression

Abstract

One of the objectives of financial management is to maximize the value of the company. For companies that have been listed on the stock exchange, this goal can be achieved by maximizing the value of the relevant market price. The purpose of this study is to find the right model to analyze the effect of Debt to Equity Ratio (DER), Earning per share (EPS), Price to Book Value (PBV), and Return on Equity (ROE) on the stock prices of manufacturing companies included in the sector the food and beverage sub-sector of the consumer goods industry that is listed on the Indonesia Stock Exchange. Research data include the financial data for the period 2012-2018. The estimation method used is the panel data regression. The analysis shows that the most appropriate model in this research is the Random Effect Model. Variables that affect stock prices based on the model are earnings per share and price to book value.

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