The effect of financial ratio on stock price in telecommunications sector companies listed on the Indonesia stock exchange

Tri Wulansari; Sulastri Sulastri; Marlina Widiyanti; Mohamad Adam

doi:10.21744/ijbem.v6n1.2058

Authors

Tri Wulansari
triwulansari93@gmail.com
Master of Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Sulastri Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Marlina Widiyanti Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia
Mohamad Adam Lecturer of Magister Management, Economic Faculty, Sriwijaya University, Palembang, Indonesia

Keywords:

current ratio, financial ratios, return on assets, return on equity, stock prices

Abstract

This study aims to determine the effect of financial ratios on stock prices in telecommunications sector companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2021 period. The population in this study were all telecommunications sector companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2021. Using a purposive sampling technique, the research sample consisted of 10 telecommunications sector companies. Data analysis used the panel data regression method, where the selected model was the fixed effect. The results showed that the Current Ratio (CR), Return on Equity (ROE), Return on Assets (ROA), and Earning Per Share (EPS) had a positive and significant effect on stock prices. In contrast, the Debt to Equity Ratio (DER) was negative and significant to stock prices.

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