The Analysis of the Influence of Financial Performance on Stock Prices with Earning Growth as a Moderating Variable in Infrastructure, Utility and Transportation Sector Companies Listed on the Indonesia Stock Exchange


Authors : Melpa Riani; Iskandar Muda; Endang Sulistya Rini

Volume/Issue : Volume 5 - 2020, Issue 8 - August

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/3hTIJFE

DOI : 10.38124/IJISRT20AUG371

This study aims to determine the effect of financial performance on stock prices of infrastructure, utility and transportation companies listed on the Indonesia Stock Exchange. The variables used in this study are stock price as the dependent variable and Current Ratio, Debt to Equity Ratio, Total Assets Turnover, Net Profit Margin, Return on Equity and Price Earning Ratio as independent variables with Earning Growth as a moderating variable. The samples taken were thirty infrastructure, utility and transportation companies listed on the Indonesia Stock Exchange (BEI) in 2010-2019. The data used are the financial statements of each sample company, published through www.idx.co.id and www.financeyahoo.com. The method of analysis used in this research is a quantitative method, with classical assumption testing, and statistical analysis, namely multiple linear regression analysis using a random-effects model. The sampling method used was purposive sampling. The results of this study show that the financial ratios consisting of the TATO, NPM, ROE and PER ratios partially have a positive and significant effect on stock prices. In contrast, CR and DER have no significant effect on stock prices. Earning Growth variable is only able to moderate the effect of NPM on stock prices.

Keywords : Stock Prices, CR, DER, TATO, NPM, ROE, PER, and Earning Growth

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