EFFECT OF CURRENT RATIO, DEBT OF EQUITY RATIO, RETURN ON ASSETS, EARNINGS PER SHARE, AND NET PROFIT MARGIN ON STOCK PRICE IN TRANSPORTATION AND LOGISTICS SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE IN 2014-2019
Keywords:
CR, DER, ROA, EPS, NPM, Stock PriceAbstract
The financial performance of Indonesian transportation and logistics firms has fluctuated, with the majority of them experiencing a fall in performance during the Covid-19 pandemic. The drop in performance has an effect on the drop in stock prices. The goal of this study is to examine at how the variables Current Ratio (CR), Debt to Equity Ratio (DER), Return On Asset (ROA), Earning Per Share (EPS), and Net Profit Margin (NPM) affect stock prices in transportation and logistics companies listed on the Indonesia Stock Exchange from 2014 to 2019. The results of panel data regression analysis revealed that the CR, DER, and ROA had no significant effect on stock prices. The EPS and NPM are two more variables that have a considerable impact on stock values. The CR, DER, ROA, EPS, and NPM variables have a major impact on stock prices simultaneously.
Downloads
References
Pardiansyah, E., Investing in Islamic Economic Perspective: Theoretical and Empirical Approach. Economica: Journal of Islamic Economics. 8(2), 337-373. 2017 DOI: https://doi.org/10.21580/economica.2017.8.2.1920.
Firdaus, F. and E. Endri, Financial Statement Analysis: Evidence from Indonesian Bank BUKU IV. International Journal of Innovative Science and Research Technology, 2020. 5(4): p. 455-461 DOI: https://doi.org/10.2469/faj.v67.n3.3.
Wehantouw, J.D., P. Tommy, and J.L.A. Tampenawas, The Effect of Capital Structure, Company Size, and Profitability on Stock Prices in Food and Beverage Sector Industrial Companies Listed on the Indonesia Stock Exchange for the 2012-2015 Period. Journal of Research in Economics, Management, Business and Accounting, 5(3) 3385-3394. 2017.
Pratama, A. and T. Erawati, Pengaruh current ratio, debt to equity ratio, return on equity, net profit margin dan earning per share terhadap harga saham (study kasus pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia periode 2008-2011). Jurnal Akuntansi, 2014. 2(1): p. 1-10 DOI: https://doi.org/10.24964/ja.v2i1.20.
Layachi, O.B., THE ROLE OF THE LEGAL SYSTEM IN STRENGTHENING MECHANISMS FOR ATTRACTING FOREIGN OIL INVESTMENTS: A CASE STUDY OF ALGERI. PalArch's Journal of Vertebrate Palaeontology, 2021. 18(1): p. 55-90.
Makandar, S.A.Q.B. and B.R.A. Nagar, COVID-19 LOCKDOWN IN INDIA AND ITS IMPACT ON PEOPLE’S LIVELIHOODS. PalArch's Journal of Archaeology of Egypt/Egyptology, 2021. 18(18): p. 381-388.
Blauwens, G., et al., Towards a modal shift in freight transport? A business logistics analysis of some policy measures. Transport reviews, 2006. 26(2): p. 239-251 DOI: https://doi.org/10.1080/01441640500335565.
Shen, H., et al., The impact of the COVID-19 pandemic on firm performance. Emerging Markets Finance and Trade, 2020. 56(10): p. 2213-2230 DOI: https://doi.org/10.1080/1540496X.2020.1785863.
Singh, S., et al., Impact of COVID-19 on logistics systems and disruptions in food supply chain. International Journal of Production Research, 2021. 59(7): p. 1993-2008 DOI: https://doi.org/10.1080/00207543.2020.1792000.
Segerstrom, S.C., et al., Worry and rumination: Repetitive thought as a concomitant and predictor of negative mood. Cognitive therapy and Research, 2000. 24(6): p. 671-688 DOI: https://doi.org/10.1023/A:1005587311498.
Nazir, N., et al., AN IN-DEPTH ANALYSIS OF APPLICABILITY AND EFFECTIVENESS OF LEARNER-CENTERED APPROACH AT UNDERGRADUATE LEVEL IN PAKISTANI CLASSROOM CONTEXT. PalArch's Journal of Archaeology of Egypt/Egyptology, 2021. 18(18): p. 353-370.
Choiriyah, C., et al., The Effect Of Return On Assets, Return On Equity, Net Profit Margin, Earning Per Share, And Operating Profit Margin On Stock Prices Of Banking Companies In Indonesia Stock Exchange. International Journal of Finance Research, 2020. 1(2): p. 103-123 DOI: https://doi.org/10.47747/ijfr.v1i2.280.
Ginting, M.C., Effect of current ratio and debt to equity ratio (DER) on financial distress in property & real estate companies on the Indonesia stock exchange. Management Journal, 2017. 3(2): p. 37- 44.
Aristanti, R.D. and S. Utiyati, Effect of NPM, DER, CR, and EPS on Stock Prices in Transportation Companies. Journal of Management Science and Research, 7(10) 2018.
Agustina, S. and H. Hendratno, Pengaruh Current Ratio, Debt To Asset Ratio, Debt To Equity Ratio, Return On Asset, Dan Price Earning Ratio Terhadap Harga Saham Pada Peusahaan Sub Sektor Plastik Dan Kemasan Yang Terdaftar Di Bursa Efek Indonesia (bei) Tahun 2012-2016. eProceedings of Management, 2019. 6(1) DOI: https://doi.org/10.31933/jimt.v1i2.51.
Zampieri, M., et al. A report on the DSL shared task 2014. DOI: https://doi.org/10.3115/v1/W14- 5307.
Anah, S., I. Firdaus, and E. Allififfah, The Effect of Current Ratio, Debt To Equity Ratio and Price Book Value on Stock Prices in the Transportation Sub-Sector Listed on the IDX for the 2012-2016 Period. Journal of Economics, 23(03), 403-416. 2018.
Hutabarat, G., Y. Ledifraoneva, I, and N. Meisin., Analysis of Financial Ratios and Company Size on Stock Prices of Infrastructure and Utilities and Transportation Companies in Indonesia. Journal of Islamic Economics & Economics, 2(2) 2019.
Yuliana and R.T. Hastuti, The Influence of DER, ROE, ROA, NPM, and EPS on Stock Prices of Manufacturing Companies. Tarumanagara Accounting Multiparadigm Journal, 2(4), 1568-1577. 2020.
Idawati, W. and A. Wahyudi, Effect of earning per shares (EPS) and return on assets (ROA) against share price on coal mining company listed in Indonesia stock exchange. Journal of Resources Development and Management, 2015. 7: p. 79-91.
Faleria, R.E., L. Lambey, and S.K. Walandouw, Effect of Current Ratio, Net Profit Margin and Earning Per Share on Stock Prices on the Indonesia Stock Exchange (Case Study on Food and Beverages Sub-Sector). Going Concern: Journal of Accounting Research, 2017. 12(2) DOI: https://doi.org/10.32400/gc.12.2.17483.2017.
Suyono, S. and Y. Yoki, Analysis of fundamental ratios effect on the stock prices of transportation companies listed on BEI Period 2011-2016. Journal of Accounting, Entrepreneurship and Business, 3(1), 89-100. . 2018.
Budiyono, B. and S.B. Santoso, The Effects of EPS, ROE, PER, NPM, and DER on the Share Price in the Jakarta Islamic Index Group in the 2014-2017 Period. Jurnal Manajemen Bisnis, 2019. 10(2): p. 177-191 DOI: https://doi.org/10.18196/mb.10177.
Zuraida, Z. and S. Sugianto, CSR Spendings of Indonesia's IPO Prospectuses. Jurnal Keuangan dan Perbankan, 2021. 25(2): p. 415-433 DOI: https://doi.org/10.26905/jkdp.v25i2.5559.
Arkan, T., The importance of financial ratios in predicting stock price trends: A case study in emerging markets. Finanse, Rynki Finansowe, Ubezpieczenia, 2016(79): p. 13-26 DOI: https://doi.org/10.18276/frfu.2016.79-01.
Fridson, M.S. and F. Alvarez, Financial statement analysis: a practitioner's guide. Vol. 597. 2011: John Wiley & Sons.
Tandon, K. and N. Malhotra, Determinants of stock prices: Empirical evidence from NSE 100 companies. International Journal of Research in Management & Technology, 2013. 3(3): p. 2249- 9563.
Goetzmann, W.N., et al., Modern portfolio theory and investment analysis. John Wiley & Sons, 2014. 237.
Qamar, A., et al., EXAMINING THE FEMALES'OBJECTIFICATION IN MUSIC VIDEOS FROM MARTHA NUSSBAUM'S PERSPECTIVE. PalArch's Journal of Archaeology of Egypt/Egyptology, 2021. 18(18): p. 128-141.
Vanieva, A.R., Organizational and Economic Changes in Structures of Agricultural Enterprises on Fundamentals of Financial Management, in SCIENCE AND EDUCATION. 2017. p. 145-148.
Matar, A., Evaluating the performance of Islamic and commercial banks in Jordan: A comparative study. Jordan Journal of Economic Sciences, 2017. 4(1): p. 57-75 DOI: https://doi.org/10.12816/0035061.
Brigham, E.F. and J.F. Houston, Fundamentals of Financial Management 12 edition. 2009: Cengage Learning.
Oseni, J.E., Determinants of Equity Prices in the Stock Markets. Available at SSRN 1326912, 2009 DOI: https://doi.org/10.2139/ssrn.1326912.
Obeidat, I.M., The Internal Financial Determinants of Common Stock Market Price: Evidence from Abu Dhabi securities market. Journal of Economic and Administrative Sciences, 25(1), 21-46. 2009 DOI: https://doi.org/10.1108/10264116200900002.
Al-Tamimi, H.A.H., A.A. Alwan, and A.A. Abdel Rahman, Factors affecting stock prices in the UAE financial markets. Journal of transnational management, 2011. 16(1): p. 3-19 DOI: https://doi.org/10.1080/15475778.2011.549441.
Srinivasan, P., Determinants of equity share prices in India: A panel data approach. The Romanian Economic Journal, 2012. 46(6): p. 205-228.
Raithatha, M. and V. Bapat, A panel data analysis of corporate attributes and stock prices for Indian manufacturing sector. Journal of Modern Accounting and Auditing, 2007. 9(11): p. 1519-1525.
Bhattarai, Y.R., Determinants of share price of Nepalese commercial banks. Economic Journal of Development Issues, 2014: p. 187-198 DOI: https://doi.org/10.3126/ejdi.v17i1-2.14528.
Ligocká, M. and D. Stavárek, The relationship between financial ratios and the stock prices of selected European food companies listed on stock exchanges. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2019. 67(1): p. 299-307 DOI: https://doi.org/10.11118/actaun201967010299.
Handayani, S., The Effect of Total Asset Turnover (TATO), Debt to Equity Ratio (DER) and Return on Assets (ROA) on Stock Returns in Banking Companies Listed on the Indonesia Stock Exchange. Journal of Management Analysis, 3(2) 2017.
Cathelia , N. and R.D. Sampurno, Analysis of the Effect of ROE, DER, TATO, Capex, and Nccr on Stock Prices (Case Study on Manufacturing Companies in the Consumer Goods Industry Sector listed on the Indonesia Stock Exchange 2010-2014 Period. Diponegoro Journal of Management,5(3). 2016.
Hartini, Testing the Coalition of Debt to Equity Ratio and Earning Per Share on Stock Prices (Empirical case study on food and beverage sector companies listed on the Indonesian Sharia Stock Index). I-FINANCE: Research Journal on Islamic Finance, 3(1). 2017.
Polii, P.J.V., I. Saerang, and Y. Mandagie, The Effect of Financial Ratios on Stock Prices in Public Private National Foreign Exchange Banks that Go Public on the Indonesia Stock Exchange. Journal of Research in Economics, Management, Business and Accounting, 2(2) 2014.
Safitri, The influence of PER, ROA, and DER on stock prices in the financial institutions sub-sector companies on the Indonesia Stock Exchange. Business Administration eJournal, 4(2), 535-549. 2016.
Egam, G.E.Y., V. Ilat, and S. Pangerapan, The Effect of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), and Earning Per Share (EPS) on the stock prices of companies included in the LQ45 Index on the Indonesia Stock Exchange for the 2013-2015 period. Journal of Research in Economics, Management, Business and Accounting, 5(1), 105-114. 2017.
Dananti, K. and M.P. Cahjono, The Best Indicator of Capital Structure to Predict Firm's Performance. Review of Integrative Business and Economics Research, 2017. 6(4): p. 317.
Freihat, A.R.F. and R. Kanakriyah, Impact of R&D expenditure on financial performance: Jordanian evidence. European Journal of Business and Management, 2017. 9(32): p. 73-83.
Ekawati, S. and T. Yuniati, The Effect of ROA, ROE, and EPS on Stock Prices in Transportation Companies. Journal of Management Science and Research, 9(3) 2020.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
