Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)

Company Performance and Macroeconomics Variables Influence on Stock Price

Authors
Dodi Prastuti, Pristina Hermastuti Setianingrum
Corresponding Author
Dodi Prastuti
Available Online February 2019.
DOI
10.2991/aicmar-18.2019.8How to use a DOI?
Keywords
stock price; company performance; macroeconomics variables
Abstract

This study examined the influence of company performance and macroeconomics variables on stock price. The company performance is measured by profitability ratios. The profitability ratios used are: return on equity and net profit margin. Price earnings ratio and price to book value are used as measurement of market value ratio. Whereas the macroeconomics variables are measured by interest rate and inflation rate. The samples of this study are financial and manufacture sectors in the Indonesia Stock Exchange (IDX). Combined, those sectors have the biggest capitalization in IDX. This study uses pooled panel data of 27 companies. The data is yearly data of seven variables taken from 2009 until 2015, therefore there are 189 observed data. Using fixed effect model, result of the study showed that company performance and macroeconomic variables have strong influence on stock prices. Test of hypotheses showed that simultaneously company performance and macroeconomics variable have significant influence on stock price. Whereas partially, interest rate, price earnings ratio and return on equity have significant influence to stock price. Net profit margin, inflation and price to book value do not have significant influence on stock price.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
February 2019
ISBN
978-94-6252-672-3
ISSN
2352-5428
DOI
10.2991/aicmar-18.2019.8How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Dodi Prastuti
AU  - Pristina Hermastuti Setianingrum
PY  - 2019/02
DA  - 2019/02
TI  - Company Performance and Macroeconomics Variables Influence on Stock Price
BT  - Proceedings of the 5th Annual International Conference on Management Research (AICMaR 2018)
PB  - Atlantis Press
SP  - 32
EP  - 35
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicmar-18.2019.8
DO  - 10.2991/aicmar-18.2019.8
ID  - Prastuti2019/02
ER  -