THE INFLUENCE OF DEBT TO EQUITY RATIO (DER) AND PRICE EARNING RATIO (PER) FACTORS TOWARD THE STOCK PRICE OF THE FOOD AND BEVERAGE INDUSTRY SECTOR: AN EMPIRICAL STUDY ON THE INDONESIA STOCK EXCHANGE
Journal Title: Educational Research International - Year 2017, Vol 6, Issue 2
Abstract
The objective of this research is to study the influence factors of Debt to Equity Ratio (DER) and Price Earnings Ratio (PER) factors toward the Stock Price of the Food and Beverage Industry Sector (An Empirical study on the Indonesia Stock Exchange). The methodology approach of this research has use 5 sample of companies with purposive sampling to determine sample criteria on the Food and Beverage companies listed in period of 2012 – 2016, which consistently publish their Annual Financial Report on the website of Indonesia Stock Exchange (IDX). And also, Kolmogorov-Smirnov test (KS test) was used to examine normality of distribution of variables. Durbin-Watson test was used to examine correlation of variables. Multi-variable regression was used to test assumptions. Multiple regression analysis is used to conduct hypothesis test (test of assumptions) of the relationship and its influence of GCG factors toward EVA (company’s performance indicator). Also, confidence level of test of assumptions was 95%. It means maximum error level is 5%, namely assumptions may be accepted or rejected in error level of α ≥ 5%. The finding shows that there is an influence between of those independent variables debt to Equity Ratio (DER) (X1) and Price Earnings Ratio (PER) (X2) toward Stock Price (Y). which F-Test has shown sig value of 0.03 less than the α sig. of 0.05. This study can contribute in providing an overview on how to create a firm value in Indonesia which can be used by managers to create a decision making and reinforcing the factors influences of the Stock Price.
Authors and Affiliations
Asmie Poniwati
Keywords
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