The Influence of ROE and DER to Stock Price Automotive and Components Companies Listed on Indonesian Stock Exchange Between 2010 – 2020

Authors

  • Putri Amalia Pamulang University
  • Sutiman Sutiman Pamulang University
  • Ahmad Nazir Pamulang University

DOI:

https://doi.org/10.55538/ifr.v2i1.15

Keywords:

Return On Equity (ROE), Debt to Equity Ratio (DER), Stock Price, Automotive and Component Companies

Abstract

This study aims to examine the effect of Return On Equity (ROE) and Debt to Equity Ratio (DER) on Stock Prices in Automotive and Component Companies listed on the IDX for the 2010-2020 period, this analysis uses 2 (two) independent variables, namely Return On Equity ( ROE) and Debt to Equity Ratio (DER) and 1 (one) dependent variable, namely Stock Price. This research uses data panel. The results are that the best model of this research is random effect. ROE has not a significant effect but DER has a significant effect and negative partially. ROE and DER have a significant effect on Stock Prices simultaneously.

References

Arkan, T. (2016). The importance of financial ratios in predicting stock price trends: A case study in emerging markets. Finanse, Rynki Finansowe, Ubezpieczenia, 79, 13–26.

Efendi, A., Putri, L. P., & Dungga, S. (2019). The effect of debt to equity ratio and total asset turnover on return on equity in automotive companies and components in Indonesia. 3rd International Conference on Accounting, Management and Economics 2018 (ICAME 2018), 182–188.

Jermsittiparsert, K., Ambarita, D. E., Mihardjo, L. W. W., & Ghani, E. K. (2019). RISK-RETURN THROUGH FINANCIAL RATIOS AS DETERMINANTS OF STOCK PRICE: A STUDY FROM ASEAN REGION. Journal of Security & Sustainability Issues, 9(1).

Kasmir. (2013). Analisis Laporan Keuangan. Raja Grafindo Persada.

Nordiana, A., & Budiyanto, B. (2017). Pengaruh DER, ROA dan ROE terhadap harga saham pada perusahaan food and beverage. Jurnal Ilmu Dan Riset Manajemen (JIRM), 6(2).

Pražák, T., & Stavárek, D. (2017). The effect of financial ratios on the stock price development. Interdiscip. Econ. Bus. Res, 43, 3.

Puspitaningtyas, Z. (2017). Is financial performance reflected in stock prices? 2nd International Conference on Accounting, Management, and Economics 2017 (ICAME 2017), 17–28.

Rachman, Y. T., Rachmat, R. A. H., & Oktaviani, A. S. (2020). The impact of earning per share (eps), return on assets (roa) and debt to equity ratio (der) on stock price (empirical study in automotive sub sector manufacturing companies and components listed in Indonesia stock exchange (IDX) period 2015-2019). PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(10), 3083–3093.

ROE, D. A. N. P. B. V. T. H., & YANG, S. P. S. O. (2021). THE INFLUENCE OF DER, ROE, AND PBV TO STOCK PRICE OF AUTOMOTIVE SECTOR COMPANIES LISTED ON THE IDX PERIOD 2015-2019. Management Research, 4(1).

Salim, M. N. (2020). Factors affecting the individual stock price index (IHSI) industrial manufacturing sector in Indonesia, automotive sub sectors, and components in Indonesia stock exchange (IDX). The Economics and Finance Letters, 7(1), 47–56.

Sugiyono, P. D. (2017). Metode Penelitian Bisnis: Pendekatan Kuantitatif, Kualitatif, Kombinasi, dan R&D. Penerbit CV. Alfabeta: Bandung.

Yusena, A., Rahayu, R., & Yohana, D. (2019). Factors that Affect the Stock Price of Automotive Company Registered in IDX Period 2014-2018. International Journal of Innovative Science and Research Technology, 4(12), 626–630.

Downloads

Published

2022-09-04

How to Cite

Amalia, P., Sutiman, S., & Nazir, A. (2022). The Influence of ROE and DER to Stock Price Automotive and Components Companies Listed on Indonesian Stock Exchange Between 2010 – 2020. Indonesian Financial Review, 2(1), 42–55. https://doi.org/10.55538/ifr.v2i1.15

Issue

Vol. 2 No. 1 (2022)

Section

Articles

License

Copyright (c) 2022 Putri Amalia, Sutiman Sutiman, Ahmad Nazir

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Most read articles by the same author(s)