Abstract:
Since last decade, retail company keep doubling their outlets to increase the chance
to gain more profit. Even during pandemic Covid-19, retail sector contribute around
12.69% to Indonesia's GDP. The factors that influence retail companies to survive
during the pandemic is because of expansion into digital base transaction, which
help customer to purchase item without coming to the shop. With that the company
maintain their profitability and aside from that the companies also supported by
funding from the capital market. This study aims to prove the effect of financial
ratio in term of current ratio (CR), debt to equity ratio (DER), total asset turnover
(TATO), and earning per share (EPS) and their relations toward company’s stock
price. Those four independent variables tested partially and simultaneously to prove
their influence on stock price of retail sector companies that listed on Indonesia
Stock Exchange (IDX). There are in total 54 observation data gathered from 6 retail
company during period of time 2015 – 2023. This study uses qualitative research
method and the data examined using descriptive analysis, classical assumption test,
and multiple linear regression test with technique Random Effect Model (REM).
The significant value used is 0.1 or 10%, with this the outcome from the research
reveal current asset and debt to equity ratio both have negative insignificant effect.
Meanwhile total asset turnover and earning per shares have significant positive
influence toward the independent variable. The result of the simultaneous testing
reveal the F-statistic 0.00011 and R-squared is 38.47% where the other 61.53% is
influencing by other variable that not tested in this study.
