Companies Financial Performance and Macroeconomics Condition, How They Relate to Share Price
- DOI
- 10.2991/aicmar-18.2019.14How to use a DOI?
- Keywords
- macroeconomic variables; financial ratios; stock price
- Abstract
The idea behind this research is that theoretically macroeconomics condition as well as financial performance together should correlate with companies stock price. The main purpose of this study is to know how strong is the correlation of companies financial performance and macroeconomics condition to company stock price in consumption sector in Indonesia stock exchange market. The independent variables uses in this study are: price earnings ratio, price to book value ratio, net profit margin, gross domestic product, inflation rate and BI-rate; whereas the dependent variable is companies stock price. Population in this study is consumption sector in Indonesia stock exchange market. Sampling method use in this study is stratified random sampling. This study uses multiple regression models. The data use in this study is quarterly data from 2009 until first quarter of 2017. The result of the study shows that there are strong correlations between all independent variables with stock price and found that there are significant correlation between company stock price with price earnings ratio, price to book value, net profit margin, return on equity, gross domestic product, inflation rate and BI-rate simultaneously.
- 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 - Doddi Prastuti AU - Pristina Hermastuti Setianingrum PY - 2019/02 DA - 2019/02 TI - Companies Financial Performance and Macroeconomics Condition, How They Relate to Share Price BT - Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018) PB - Atlantis Press SP - 62 EP - 66 SN - 2352-5428 UR - https://doi.org/10.2991/aicmar-18.2019.14 DO - 10.2991/aicmar-18.2019.14 ID - Prastuti2019/02 ER -