The Effect of Financial Ratio on Stock Price in Agricultural Companies on The Indonesia Stock Exchange 2017-2020 Period

Dian Aprina Purba, Nisrul Irawati, Khaira Amalia Fachrudin

Abstract


The goal to be achieved from this research is to determine the effect of the ratio of return on equity, earnings per share, and price earning ratio, on stock prices in the agricultural sector on the Indonesia Stock Exchange for the 2017-2020 period. This study used a population of 26 companies listed on the IDX for the 2017-2020 period, namely the agricultural sector. Multiple linear regression analysis method is used in this study. Based on the conclusion, there is a negative effect of the ratio of return on equity (X1) on stock prices (Y) in testing the first hypothesis. To test the next hypothesis, the conclusion shows that the ratio of earnings per share (X2) has a positive effect on stock prices (Y). This study also found that the price earning ratio (X3) is detrimental to the stock price (Y) in testing the third hypothesis.



Keywords


EPS (Earning Per Share); PER (Price Earning Ratio); ROE (Return on Equity); stock prices.

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DOI: https://doi.org/10.30596/miceb.v1i0.146

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