• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2018 Vol.9(6): 231-237 ISSN: 2010-023X
DOI: 10.18178/ijtef.2018.9.6.621

The Determinant of Stock Price at the Banking Sub-Sector Company in Indonesia Stock Exchange

Kukuh Hadi Prayogo and Etty Puji Lestari
Abstract—Before investing their fund to buy a stock or share, an investor must make analysis toward the prediction of investment risks as well as the projection of earned profit and the stock price is one of indicators that can be used on this analysis. The aim of this research is to analyze the influence of stock price seen from Return on Assets (ROA), Earning per Share (EPS) dan Price to Earning Ratio (PER) which take places at the banking sub sector company on the Stock Exchange of Indonesia. This is explanatory research that describes causal relations between one variable and another variable by using hypothesis and quantitative approach. Data analysis technique which is used on this research is panel data regression. The finding of this research is that ROA has negative influence yet insignificant toward the stock price. This condition is rarely seen but possible to happen since the condition of Stock Exchange of Indonesia is in medium market or emerging market, a condition in which government gives many interventions. Due to the intervention, many rules on the Stock Exchange are not applied well.

Index Terms—Return on assets, earning per share, price to earning ratio, stock price, panel data regression.

Kukuh Hadi Prayogo is with the Directorate General of Taxes, Ministry of Finance, Surabaya, Indonesia (e-mail: kukuhhp@gmail.com).
Etty Puji Lestari was with Department of Economics, Universitas Terbuka, Jakarta. Indonesia (e-mail: ettypl@ecampus.ut.ac.id).


Cite: Kukuh Hadi Prayogo and Etty Puji Lestari, "The Determinant of Stock Price at the Banking Sub-Sector Company in Indonesia Stock Exchange," International Journal of Trade, Economics and Finance vol.9, no.6, pp. 231-237, 2018.

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