THE INFLUENCE OF FINANCIAL RATIOS TOWARDS SHARE PRICE IN COAL MINING COMPANIES LISTED ON INDONESIA STOCK EXCHANGE (IDX)

Abstract

The research aims to discover the influence of financial ratios towards share price of coal mining industry in Indonesia both partially and simultaneously from 2015 to 2019. The researcher has chosen five independent variables that are being analyzed by descriptive statistical analysis, classical assumption test, multiple regression analysis, and hypotheses testing with Microsoft Excel 2010 and EViews 11 SV as the statistical tools. To collect the data, the purposive sampling method and panel data are being used in this research. There are 100 observation data collected in this study which was obtained from IDX and the company’s official website from 5 coal mining company as the sample. The financial ratios chosen for this research are PBV, EPS, DER, ROA, and NPM. The results of the analysis reveal that partially PBV, EPS, and NPM has a significant positive influence towards share price, ROA has a significant but negative influence towards share price, and DER does not have a significant influence towards the share price. The result of the analysis shows that the variation of the independent variables can explain by 61.48 % the variation on dependent variable.