E-JURNAL AKUNTANSI
Vol 34 No 5 (2024)

Tobin’s Q as a Mediating Variable in the Relationship between Financial Ratios and Stock Prices: An Analysis

Giri Suseno (Unknown)
Endah Arianti Putri (Faculty of Economics, Universitas Pasir Pengaraian, Indonesia)
Nurmala Sari (Faculty of Economics and Business, Rokania University, Indonesia)
Willi Meilita (Faculty of Economics and Business, Rokania University, Indonesia)



Article Info

Publish Date
27 May 2024

Abstract

Other sectors of the economy depend on Indonesia's financial industry for liquidity and loans. Therefore, studying the components that influence the value of banking stocks is interesting and important. This study investigates the mediating effect of Tobins's Q on the correlation of Price Earnings Ratio, Price to Book Value, and Earning per Share to Share Price in the Indonesian banking sector. This quantitative research uses the partial least squares-structural equation modelling (PLS-SEM) method. This study examined 43 banks listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022 with a total of 172 data for 4 years. Purposive sampling was used by the researchers. Tobin's Q is a positive mediator, although it does not statistically significantly influence EPS and PER on Share Price. In addition, Tobin's Q is also a negative mediator of PBV and Share Price, but not statistically significant. This research has major implications for managerial decision-making, investor tactics, regulatory rules, and future research on stock prices and corporate management. Keywords: Tobin's Q; Price Earnings Ratio; Price to Book Value; Earning per Share; Stock price.

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Journal Info

Abbrev

akuntansi

Publisher

Subject

Economics, Econometrics & Finance

Description

E-Jurnal Akuntansi covered various research approaches, namely: quantitative, qualitative and mixed-method. E-Jurnal Akuntansi focuses related on various themes, topics and aspects of accounting and investment, including (but not limited) to the following topics: Financial Accounting Managerial ...