ANALYSIS OF THE INFLUENCE OF FINANCIAL RATIO TOWARDS STOCK PRICE IN COAL MINING INDUSTRY LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2011-2014

Abstract

This research aims to identify and proven the significant influences in partial and simultaneously of those 5 independent variables to stock price. Those five independent variables are return on equity, return on assets, net profit margin, debt to equity ratio and price earnings ratio. In addition, this research also identifies the most significant influences factor toward stock price. This research chooses the population in coal mining industry in the period 2011-2014. This research uses quantitative research, which using some analysis methods, such as descriptive analysis, classical assumption, multiple regression analysis and hypothesis testing. According to the research result, researcher could concluded that in 10 (ten) coal mining companies period 2011-2014, there are return on asset and net profit margin which have significant influences to stock price. However, return on equity, debt to equity ratio and price earnings ratio have no significant influences towards stock price. Simultaneously, the 5 (five) independent variables has 47,2% influences towards dependent variable. The rest 52, 8% is influenced by other factors not mention in this research. Based on the research, return on asset is chosen as the most significant factor which influences the stock price.