Research Article
Relationship Betwen Capital Structure, Profitability and Company Stock Price
@INPROCEEDINGS{10.4108/eai.1-4-2019.2287289, author={Watriningsih Watriningsih and Hapsari Lukaningtyas and H. Hermanto JM}, title={Relationship Betwen Capital Structure, Profitability and Company Stock Price}, proceedings={International Conference on Environmental Awareness for Sustainable Development in conjunction with International Conference on Challenge and Opportunities Sustainable Environmental Development, ICEASD \& ICCOSED 2019, 1-2 April 2019, Kendari, Indonesia}, publisher={EAI}, proceedings_a={ICEASD\&ICCOSED}, year={2019}, month={9}, keywords={relationship capital structure profitability stock price pharmaceutical companies}, doi={10.4108/eai.1-4-2019.2287289} }- Watriningsih Watriningsih
Hapsari Lukaningtyas
H. Hermanto JM
Year: 2019
Relationship Betwen Capital Structure, Profitability and Company Stock Price
ICEASD&ICCOSED
EAI
DOI: 10.4108/eai.1-4-2019.2287289
Abstract
The aim of the research is to determine and analyze the relationship between capital structures with stock price. This article focuses on the relationship between profitability with stock price. It is also emphasis the relationship between capital structure, profitability, and stock price. This research is explanatory research. This research explains the causal relationship between the variables through hypothesis. The companies sampled are pharmaceutical companies listed on the Indonesia Stock Exchange in 2001-2012. Data analysis was performed using correlation analysis. The results showed there is negative insignificant relationship between the price of stock and capital structure. It is identified from the relationship value amounted -0,123 between the price of stock and DER with pvalue > α (0, 05). There is a positive significant relationship between the price of stock and profitability. It is recognized from the correlation value amounted 0,602 between the price of stock and ROA with pvalue < α (0,05). There is a positive significant relationship between DER and ROA with the stock price. It is recognized from the correlation value amounted 0,607 between DER and ROA with the stock price with pvalue < α (0,05).
