FACTORS AFFECTING THE CHINA INFORMATION TECHNOLOGY COMPANY'S STOCK PRICE

Abstract

In China, due to the lack of investment philosophy, speculation consciousness and blind financing and loan have become the main operating philosophy of listed companies, resulting in a series of problems in the stock price of listed companies. This research is aimed to determine whether financial ratio such as CR, DER, ROI and EPS have significant effect to the company's stock price in China Information Technology Company during 2014-2019.The samples used for this research is taken from 28 companies listed on Shanghai that have large capitalization and liquidity in Shanghai Stock Exchange(SSE). Variables of the study include CR, ROI, DER and EPS as independence variables and stock price as dependence variable. The data used for this research is the latest six years started from 2014 until 2019. The samples were taken in yearly basis which means 84 samples for each variable. For analyzed the variables, multiple regression method was selected.by using multiple regression analysis, this study provided evidence that the value of coefficient determination is 14.5%. It means 14.5% of the variation in stock price can be explained by the variation of independence variables (CR, DER, ROI and EPS).