THE INFLUENCE OF FUNDAMENTAL ANALYSIS AND SYSTEMATIC RISK TOWARDS STOCK PRICE OF BANKS LISTED ON THE LQ45 INDEX

Abstract

This research aims to identify and gives the empirical proven of significant influences in partial and simultaneously of four independent variables towards stock price. In addition, this research also identifies the most significant influences factor toward stock price. This research chooses the population in banking industry listed on LQ45 index during the period of 2011-2014. Through purposive sampling and pooling data, this research has got 96 observations from six companies in four years with quarter basis which fulfill the criteria. This research uses quantitative research, which using some analysis methods, such as descriptive analysis, classical assumption, multiple regression analysis and hypothesis testing. Based on the result, it is concluded that in the case 6 bank companies listed on LQ45 index during period of 2011-2014 there are debt to equity ratio, earnings-per-share, and return on equity which having significant influences towards stock price. On the other hand, systematic risk has no significant influences towards the stock price. Simultaneously, those four independent variables provide 69.7% influences to dependent variable. The rest, the 30.3%, is influenced by other factors outside this research. Moreover, earnings-per-share is chosen as the most significant factor that influences stock price.