JAAF (Journal of Applied Accounting and Finance)
Vol 1, No 1 (2017): JAAF Journal of Applied Accounting and Finance

THE IMPACT OF FINANCIAL RATIO TOWARD STOCK PRICE: EVIDENCE FROM BANKING COMPANIES

Marvin Wijaya (President University)
Andi Ina Yustina (President University)



Article Info

Publish Date
28 Nov 2019

Abstract

Once company stock listed in IDX it means the stocks will be control by the market. We would like to analyzed the factors that impact stock market in listed companies in ISX. The samples will be coming from Banks Companies. There are many factor that impact stock market, but the researcher only analyzed three of those. The first is dividend policy using dividend payout ratio. The second is profitability ratio using return on assets ratio and return on equity ratio. the last but not lease is solvency ratio using debt to equity ratio. The researcher used multiple regression analysis to create the research equotion. After that, in order to test the hypothesis the researcher using coefficient (R2) testand t test. Through all the test, this research present the dividend policy using dividend payout ratio and profitability ratio using return on asset ratio has significant correlation with stock price. Then, solvency ratio using debt to equity ratio and profitability using return on equity has in significant correlation with stock price.

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Journal Info

Abbrev

JAAF

Publisher

Subject

Economics, Econometrics & Finance

Description

JAAF Journal of Applied Accounting and Finance is a biannual double blind peer reviewed journal published in two period, March and September. This professional journal devoted to the development of accounting and financial disciplines both in theory and practice. The policy of the journal is to ...