Research Article
Factors That Affect Stock Prices in LQ 45 Indexed Companies
@INPROCEEDINGS{10.4108/eai.5-10-2022.2325856, author={Putri Nadya Agustini and Alfonsa Dian Sumarna}, title={Factors That Affect Stock Prices in LQ 45 Indexed Companies}, proceedings={Proceedings of the 4th International Conference on Applied Economics and Social Science, ICAESS 2022, 5 October 2022, Batam, Riau Islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={1}, keywords={net profit margin; common size pbv per der; stock prices}, doi={10.4108/eai.5-10-2022.2325856} }- Putri Nadya Agustini
Alfonsa Dian Sumarna
Year: 2023
Factors That Affect Stock Prices in LQ 45 Indexed Companies
ICAESS
EAI
DOI: 10.4108/eai.5-10-2022.2325856
Abstract
The increase and decrease in stock prices on the Indonesia Stock Exchange (IDX) was caused in addition to the fluctuating demand or purchases and offers and sales, also influenced by several other financial variables. The purpose of this study is to determine and test the influence of independent variables proxied on net profit margin, common size, price book value, price earning ratio, and debt to equity ratio on the dependent variable, namely stock price. This quantitative research uses secondary data (financial statements) on LQ45 companies for the 2017-2020 period with purposive sampling techniques of 140 data and processed using SPSS software. The result of this study is that only the PBV variable has a significant effect on the stock price. Meanwhile, the variables of net profit margin, common size, price earning ratio, and debt to equity ratio have an insignificant effect on stock prices. All independent variables simultaneously have a significant effect on stock prices. This research model states that 66.1% of dependent variables affect stock prices.