Company Performance and Macroeconomics Variables Influence on Stock Price
- DOI
- 10.2991/aicmar-18.2019.8How to use a DOI?
- Keywords
- stock price; company performance; macroeconomics variables
- Abstract
This study examined the influence of company performance and macroeconomics variables on stock price. The company performance is measured by profitability ratios. The profitability ratios used are: return on equity and net profit margin. Price earnings ratio and price to book value are used as measurement of market value ratio. Whereas the macroeconomics variables are measured by interest rate and inflation rate. The samples of this study are financial and manufacture sectors in the Indonesia Stock Exchange (IDX). Combined, those sectors have the biggest capitalization in IDX. This study uses pooled panel data of 27 companies. The data is yearly data of seven variables taken from 2009 until 2015, therefore there are 189 observed data. Using fixed effect model, result of the study showed that company performance and macroeconomic variables have strong influence on stock prices. Test of hypotheses showed that simultaneously company performance and macroeconomics variable have significant influence on stock price. Whereas partially, interest rate, price earnings ratio and return on equity have significant influence to stock price. Net profit margin, inflation and price to book value do not have significant influence on stock price.
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Dodi Prastuti AU - Pristina Hermastuti Setianingrum PY - 2019/02 DA - 2019/02 TI - Company Performance and Macroeconomics Variables Influence on Stock Price BT - Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018) PB - Atlantis Press SP - 32 EP - 35 SN - 2352-5428 UR - https://doi.org/10.2991/aicmar-18.2019.8 DO - 10.2991/aicmar-18.2019.8 ID - Prastuti2019/02 ER -