Binus Business Review
Vol 6, No 3 (2015): Binus Business Review

The Effects of Financial Ratio and Market Based Ratio toward the Stock Price of Manufacturing Industry Sector in Indonesia Stock Exchange

Mulyono, Mulyono (Unknown)



Article Info

Publish Date
30 Nov 2015

Abstract

The research objectives to examine the magnitude of the significant influence between financial ratios and the market based ratio toward the stock price of manufacturing industry sector in Indonesia Stock Exchange (IDX). In accordance IDX data by December 2013, the number of companies, included in the stock of the manufacturing industry sector, is 139 companies. Based on the analysis, it is concluded that the variable return on assets (ROA) and price to book value (PBV) has positive influence on stock prices. It can be interpreted that the higher the return on assets ratio and price to book value, the more positive influence on the increase of the stock price. The variable debt to equity ratio (DER) and price earnings ratio (PER) has negatively influence the stock price on the stock of manufacturing industry sector. This can be interpreted the higher the value of the debt to equity ratio and price earnings ratio, the more negatively influence on the decrease stock price.

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Journal Info

Abbrev

BBR

Publisher

Subject

Economics, Econometrics & Finance

Description

Binus Business Review is an international journal published in March, July, and November hosted by the Research and Technology Transfer Office (LPPM) of Universitas Bina Nusantara. The journal contents are managed by the Binus Business School, Faculty of Economics and Communications, and Forum ...