THE INFLUENCE OF PRICE-TO-BOOK VALUE, DEBT-TO-EQUITY RATIO, AND RETURN ON EQUITY TOWARDS STOCK PRICE IN PROPERTY, REAL ESTATE, AND BUILDING CONSTRUCTION COMPANY LISTED IN INDONESIA STOCK EXCHANGE (FOR THE PERIOD 2010-2014)

Abstract

Investor that invested in stock, price becomes important. Stock price reflected byavailable information about the value of the firm. One of the information is financial statement information or company’s fundamentals. Therefore, this study was conducted to analyse the influence of Price-to-Book-Value (PBV), Debt-to-Equity Ratio (DER), and Return On Equity (ROE) towards stock price in property, real estate, and building construction sector for the period 2010 – 2014. The sampling technique used in this research is purposive sampling and took sample of 18 companies under property, real estate, and building construction sector. This research used multiple regression models by SPSS 20, with confidence level of 95%. The results showed that PBV, DER, and ROE have significant influence on stock price simultaneously, with the results of 0.000. However, DER has no significant influence on stock price partially, due to that the significance value is 0.469, while PBV and ROE showed significant influence on stock price at 0.000.PBV, DER, and ROE are able to explain 59.9% variance of the stock price.