THE INFLUENCE OF FINANCIAL RATIO TOWARDS STOCK PRICES OF RETAIL COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Abstract

This research aims to find out the influence of financial ratio (return on asset, debt to equity ratio, Price earnings ratio and price to book value) partially and simultaneously towards stock price of retail companies listed in Indonesia Stock Exchange (IDX). The independent variables used in this study are return on asset, debt to equity ratio, price earnings ratio and price to book value ratio with stock price as dependent variable. The research use quantitative methodology and implement multiple regression analysis as a statistical analysis. This research choose the population in retail industry during the period of 2012 to 2016. With purposive sampling method and panel data that obtained from the IDX website and official website of each firm, this research has 60 observation from 6 companies with semiannual period which fulfilled the criteria. The result from this study is that ROA and DER has negative influence towards stock price, while PER and PBV has positive influence towards the stock price of retail companies listed in IDX. Furthermore, together ROA, DER, PER and PBV simultaneously influence the stock price 58.51%.