Stock Price with Profitability Effect (Case Study: Food and Beverage Sub-Sector Company on Indonesia Stock Exchange)
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 11
Abstract
Companies must adapt to changing fields and adopt appropriate strategies to maintain profitability, such as cost restructuring, diversification of their products or services, and investment in innovation and technology. Variable profitability is used as a measure of a company's performance against stock prices. This study aims to examine the effect of profitability ratio on stock price in food and beverage sub-sector companies listed on the IDX. There are four variables of the profitability ratio, namely ROA, ROE, EPS and NPM. Researchers chose food and beverage companies as the sample studied because this sub-sector company is a company that has a wide scope and is also stable in the face of economic changes. Researchers are interested in conducting research to find out whether there is an effect of profitability on stock prices in food and beverage companies on the Indonesia Stock Exchange. This type of research is quantitative research with regression method. The research was conducted on food and beverage sub-sector companies listed on the IDX from 2020 to 2022. In data analysis, hypothesis testing was carried out Multiple linear regression analysis. T-Stat is used to test the statistical significance of the regression coefficient, while P-value is used to test the overall significance. All independent variables have a significant T-Stat (more than 1.96) and a P-value lower than 0.05, except for the EPS variable which has a P-value of 0.088 (higher than 0.05). This shows that ROA, ROE, and NPM significantly affect the stock price, while EPS does not significantly affect the stock.
Authors and Affiliations
Ahmad Nur Budi Utama, Ade Irma Suryani
Keywords
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- EP ID EP727857
- DOI 10.47191/jefms/v6-i11-10
- Views 48
- Downloads 0
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