The result shows that the current ratio, return on equity, net profit margin, earnings per share and debt ratio simultaneously have a significant effect on the share price. In part, the current ratio, return on equity and debt ratio have a significant negative effect on the share price, while the net profit margin and earnings per share have a significant positive effect on the share price. Keywords: current ratio, return on equity, net profit margin, earnings per share, debt ratio and share price.
INTRODUCTION
- Background
- Problem Statement
- Research Questions
- Research Objectives
- Significance of Study
- Limitation
- Organization Structure of Skripsi
To know whether CR has a significant influence on the share price of F&B companies listed on the IDX or not. To know whether EPS has a significant influence on the share price of IDX-listed F&B companies or not. To know whether DR has a significant influence on the share price of F&B companies listed on the IDX or not.
LITERATURE REVIEW
- Introduction
- Stock Price
- Financial Ratios
- Previous Research
- Research Gaps
Through financial report analysis, investors can get information or an overview of the company's financial condition (Qoribulloh, 2013). This ratio measures how much of the company's current assets can be used to cover current liabilities or short-term liabilities. The higher the ratio, the greater the company's ability to cover its current liabilities.
This can certainly give investors the confidence to put their capital into the company so that it can increase the stock price over time (Asmirantho & Somantri, 2017). This will definitely be an attraction for investors to put their capital into the company and ultimately increase the share price (Purnamasari, 2015). Net profit margin is a ratio used to show a company's ability to generate net profit by comparing the company's net profit to its sales (Gibson, 2013).
The larger the net profit margin means that the selling price strategy applied by the company has succeeded. This ratio can be used by investors to find out the extent to which the company can make a profit. The higher a company's EPS value, the greater the profit the company has for each share.
This ratio compares the company's total debt to its assets or equity (Kamar, 2017).
RESEARCH METHODS
Introduction
Theoretical Framework
Hypothesis
Operational Definitions of Variables
Research Design
Instrument
Sampling
Data Collection Method
Data Analysis Techniques
DATA ANALYSIS
Descriptive Statistics Test
Classical Assumption Testing
The result of the normality test after transforming the data into Ln shows that CR, ROE, NPM, EPS and stock price are normally distributed, while DR is still not normally distributed. One of the reasons why the data is not normally distributed is due to outliers (Akhtar, 2017). Since the outliers are on the data from those companies, the researcher removes all data from those companies and runs the normality test again.
The results of the normality test after the researcher has removed the outliers show that the significance value of DR has become more than 5% so the data of DR is normally distributed. Then, since the significance value of all variables has finally been above 5%, so it can be concluded that the data of all variables are normally distributed. 26 From the table above, the results of the multicollinearity test show that all the tolerance of all the variables is above 10% (the lowest tolerance is 0.202 or 20.2%) and all the VIF of all the variables is below 10 (the lowest VIF high is 4.943).
Thus, it can be said that the multicollinearity does not occur in this regression model. Therefore, it can be said that the autocorrelation has not occurred in this regression model. 27 From the scatter plot image above, the results of heteroskedasticity show that the points above and below zero are spread out.
All dots spread randomly and do not form a specific pattern, so we can say that heteroscedasticity did not appear in the regression model.
Multiple Regression Analysis
The value of the adjusted R-squared is 0.741, which means that the variations of the independent variables in this study, such as the CR, ROE, NPM, EPS, and DR, explain 74.1% variance of variable stock price, while the remaining 25 .9% will be explained by the other variables not used in this study. Therefore, it can be concluded that CR, ROE, NPM, EPS and DR have a very strong relationship with the share price. Since the value of probability is less than the significance level of lt; 0.05), shows that this regression model can be used to estimate stock price.
Therefore, it can be concluded that CR, ROE, NPM, EPS and DR simultaneously have significant effects on the share price. The results of the regression analysis above show that five independent variables such as CR, ROE, NPM, EPS and DR significantly affect the stock price as the dependent variable because the significant level of each variable is less than 0.05. CR partially has a significant negative effect on stock price as the t-value of CR is -3.010 and its significance level is 0.004.
Partial ROE has a significant negative effect on stock price as the t-value of ROE is -3.230 and its significance level is 0.002. Partial NPM has a significant positive effect on stock price as the t-value of NPM is 5.853 and its significance level is 0.000. Partial EPS has a significant positive effect on stock price as the t-value of EPS is 5.132 and its significance level is 0.000.
Partial DR has an insignificant negative effect on stock price as the t-value of DR is -2.432 and its significance level is 0.019.
Discussions
31 reduces investor confidence to invest in the company and ultimately has an impact on a share price decline. This is because the high value of NPM of a company is a good thing as it shows that the company is profitable. As a conclusion, the NPM of a company can affect the share price, because if the NPM of a company is high, then the attractiveness of the company's shares is also higher so that investors are interested in buying that share and ultimately impact on share price will have increases.
Conservatively, if a company's NPV is low, then the attractiveness of the company's shares will also be low and will not attract investors to buy so that the share price will decrease. This is because if the EPS value is small, then the dividends distributed by the company are likely to be small. Conversely, if a company's EPS is low, then it will lower the stock price because the investor's interest in investing in the company decreases as they know that the profit the company will provide tends to be small.
It is because if the company has a high value of CR then it indicates that the company has a high total current assets. If a company's current assets are too high, it shows that the company is not using and managing its current assets effectively. It is because if a company's earnings per share are high, then the dividends paid by the company are likely to be high as well.
This is because if a company has a high DR value, then it can be seen that the company has a lot of debt to pay.
CONCLUSIONS AND RECOMMENDATIONS
Conclusions
It can certainly hurt the company itself, so investors are not interested in investing in a company that has an excess value of CR. This is because sometimes a high value of ROE is not necessarily caused by the company having a high profit, but it may be because the total equity owned by the company is relatively low when compared to the company's debt to equity. It finally makes the company more risky, thus reducing the investor's interest in buying the shares.
It is because if the company has a high NPM value, it shows that the company has a lot of profit so they can anticipate the unwanted things without significantly reducing the profit. It ultimately makes the investors more interested in investing in a company with a high NPM value. Investors will definitely be more interested in investing in the company with higher EPS as it will provide good returns.
Since the value of adjusted R2 in this study is 0.741 or 74.1%, it means that CR, ROE, NPM, EPS and DR have a strong effect on stock price at the same time.
Future Recommendations
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Influence analysis of return on assets (ROA), return on equity (ROE), net profit margin (NPM), debt-to-equity ratio (DER) and current ratio (CR) against corporate profit growth in automotive in Indonesia stock exchange. Analysis of the effect of return on equity (ROE) and debt to equity ratio (DER) on share price on cement industry listed in Indonesia Stock Exchange (IDX) in the year 2011-2015. Pengaruh Earnings per share, return on equity and debt to equity ratio Terhadap Harga Saham pada Perusahaan.
Pengaruh Current Ratio, Debt to Equity Ratio, Return On Equity, Net Profit Margin dan Earning Per Share. Pengaruh perubahan return on assets, return on equity dan economic value added terhadap perubahan harga saham dan pengaruhnya terhadap earning per share. saham. Analisis pengaruh return on assets (ROA), earning per per saham (EPS), laba bersih per saham (PER) dan net profit margin (NPM) atas harga saham (survei perusahaan telekomunikasi yang terdaftar di Bursa Efek Indonesia Periode Tahun.
Pengaruh Profitabilitas, Financial Leverage Dan Ukuran Perusahaan Terhadap Harga Saham (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2005-2014).
