The effect of fundamental and technical variables on stock price (Study on manufacturing companies listed in Indonesia Stock Exchange)
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2014, Vol 17, Issue 3
Abstract
A capital market is any trade in securities which are called stock exchanges. In the capital market, the sellers and buyers meet in order to raise capital. More specifically, stock price used by investors is one of the important information before deciding investment. Therefore, the investors must have guidelines when investing to be done. This study aims to analyze the effect of fundamental and technical variables on stock prices. The variables used in this study are Debt Equity Ratio (DER), Return On Equity (ROE), Price Earnings Ratio (PER), Interest Rates (IR), and Exchange Rates (ER). Data analysis was performed on 45 manufacturing companies listed in Indonesia stock Exchange during 2007-2011 by using multiple analysis regression. The results showed that Return on Equity, Price Earnings Ratio and Exchange Rate have positive effect to stock prices, but Debt to Equity Ratio and Interest Rates has no effect on stock prices. The practical implication is that in determining stock prices not only from the company's internal factors, but also from external companies.
Authors and Affiliations
Eva Dwi Astutik, Surachman Surachman, Atim Djazuli
Keywords
Related Articles
- EP ID EP468435
- DOI 10.14414/jebav.v17i3.356
- Views 61
- Downloads 0
Strategic environment and bank performance; (Empirical study of bank listed in Indonesian stock exchange period 2011-2015)
This study aimed to explain the interaction between macroeconomic and the internal environment with the performance of banks in Indonesia. The analysed data obtained from 10 banks for 5-year observation period by using d...
Customer participation in the creation and implementation of the service for internet banking
This study aims to answer two important issues such as what value of internet banking services that is prioritized by the bank in the implementation of internet banking, and how the bank tries to involve the customers in...
The employees and customers satisfaction perception on financial performance: A model of service-profit-chain in Jakarta
The purpose of this study is to examine the impact of the relationship between employee satisfaction and customer satisfaction, and also to examine the impact of both on a hospitality companys financial performance utili...
The effect of job stress and job motivation on employees’ performance through job satisfaction (A study at PT. Jasa Marga (Persero) Tbk. Surabaya - Gempol branch)
Job stress and motivation has a critical role to enhance female employee performance. The research attempts to analyze the direct effect of job stress and motivation on employee performance, and indirect effect of job st...
Rhetoric in sustainability report at PT Krakatau Steel Indonesia.
This research was motivated by the implementation of Corporate Social Responsibility (CSR) activities at PT. Krakatau Steel, having suffered losses for five consecutive years. The objective of this study is to understand...