The Influence of Profitability and Market Ratio Toward Stock Prices of Infrastructure, Utility and Transportation Companies in Indonesia Stock Exchange

  • Sarli Rahman Sekolah Tinggi Ilmu Ekonomi Pelita Indonesia, Pekanbaru, Indonesia
  • Mimelientesa Irman Sekolah Tinggi Ilmu Ekonomi Pelita Indonesia, Pekanbaru, Indonesia
  • Sukanthako Sim Sekolah Tinggi Ilmu Ekonomi Pelita Indonesia, Pekanbaru, Indonesia
Keywords: Return on equity (ROE), non-profit margin (NPM), earnings per share (EPS), price to book value (PBV), stock prices

Abstract

The aim of the research is to determine the influence of return on equity, net profit margin, earnings per share and price to book value on stock price of infrastructure, utility and transportation companies that are listed in Indonesia Stock Exchange from the year 2014 to 2017. Purposive Sampling technique is utilized to collect data, and the sample consists of 19 companies. The data is analysed through multiple linear regression by using SPSS 16.0. The result of this study shows that in partial, the variable of return on equity and the net profit margin has a negative effect on stock price while the earning per share and price to book value have a positive effect on the stock price.

Published
2019-12-31
How to Cite
Rahman, S., Irman, M., & Sim, S. (2019). The Influence of Profitability and Market Ratio Toward Stock Prices of Infrastructure, Utility and Transportation Companies in Indonesia Stock Exchange. Selangor Business Review, 4(2), 15-32. Retrieved from http://sbr.journals.unisel.edu.my/ojs/index.php/sbr/article/view/66