Determinants of stock price performance in the Indonesian basic industry
Purpose — This study aimed to identify the determinant factors of the stock price performance, proxied by price earnings ratio, in the basic industry (IDXBASIC) and the causal relationship between them. Method — Data were collected from the Indonesia Stock Exchange for a period of five years, spann...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business
2023-08-01
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| Series: | Journal of Enterprise and Development |
| Subjects: | |
| Online Access: | https://journal.uinmataram.ac.id/index.php/jed/article/view/8017 |
| _version_ | 1827875116989546496 |
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| author | Novinda Krisna Putri Dian Martha Nurul Amanah Nurul Aini Jenia Nur Soelistyoningrum |
| author_facet | Novinda Krisna Putri Dian Martha Nurul Amanah Nurul Aini Jenia Nur Soelistyoningrum |
| author_sort | Novinda Krisna Putri |
| collection | DOAJ |
| description |
Purpose — This study aimed to identify the determinant factors of the stock price performance, proxied by price earnings ratio, in the basic industry (IDXBASIC) and the causal relationship between them.
Method — Data were collected from the Indonesia Stock Exchange for a period of five years, spanning from 2017 to 2021. The purposive sampling method was chosen, and a total of sixty firms were selected for the final sample of this study. This study adopts generalized least squares of panel data analysis using STATA version 13 software.
Result — The results revealed that return on equity, debt-equity ratio, price-to-book value, earnings growth, and dividend payout significantly impact the price-earnings ratio (PE) and thus become significant determinants of the price-earnings ratio (PE). On the other hand, market return and firm size showed no significant influence on the price-earnings ratio.
Contribution — This study's academic contribution is its specific focus on the Indonesia Basic Industry (IDXBASIC) and exploration of the factors influencing the Price-Earning Ratio (P/E ratio) within this sector, filling a significant gap in the literature and offering valuable insights for investors, policymakers, and market participants.
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| first_indexed | 2024-03-12T17:02:18Z |
| format | Article |
| id | doaj.art-daa57f015e45442f8e8b79d3e87b3a74 |
| institution | Directory Open Access Journal |
| issn | 2715-3118 2685-8258 |
| language | English |
| last_indexed | 2024-03-12T17:02:18Z |
| publishDate | 2023-08-01 |
| publisher | Universitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and Business |
| record_format | Article |
| series | Journal of Enterprise and Development |
| spelling | doaj.art-daa57f015e45442f8e8b79d3e87b3a742023-08-07T10:14:50ZengUniversitas Islam Negeri (UIN) Mataram, Faculty of Islamic Economics and BusinessJournal of Enterprise and Development2715-31182685-82582023-08-015310.20414/jed.v5i3.8017Determinants of stock price performance in the Indonesian basic industryNovinda Krisna Putri0Dian Martha Nurul Amanah1Nurul Aini2Jenia Nur Soelistyoningrum3Bina Nusantara University, IndonesiaBina Nusantara University, IndonesiaBina Nusantara University, IndonesiaBina Nusantara University, Indonesia Purpose — This study aimed to identify the determinant factors of the stock price performance, proxied by price earnings ratio, in the basic industry (IDXBASIC) and the causal relationship between them. Method — Data were collected from the Indonesia Stock Exchange for a period of five years, spanning from 2017 to 2021. The purposive sampling method was chosen, and a total of sixty firms were selected for the final sample of this study. This study adopts generalized least squares of panel data analysis using STATA version 13 software. Result — The results revealed that return on equity, debt-equity ratio, price-to-book value, earnings growth, and dividend payout significantly impact the price-earnings ratio (PE) and thus become significant determinants of the price-earnings ratio (PE). On the other hand, market return and firm size showed no significant influence on the price-earnings ratio. Contribution — This study's academic contribution is its specific focus on the Indonesia Basic Industry (IDXBASIC) and exploration of the factors influencing the Price-Earning Ratio (P/E ratio) within this sector, filling a significant gap in the literature and offering valuable insights for investors, policymakers, and market participants. https://journal.uinmataram.ac.id/index.php/jed/article/view/8017price earning ratiobasic industrychemical industrydeterminants |
| spellingShingle | Novinda Krisna Putri Dian Martha Nurul Amanah Nurul Aini Jenia Nur Soelistyoningrum Determinants of stock price performance in the Indonesian basic industry Journal of Enterprise and Development price earning ratio basic industry chemical industry determinants |
| title | Determinants of stock price performance in the Indonesian basic industry |
| title_full | Determinants of stock price performance in the Indonesian basic industry |
| title_fullStr | Determinants of stock price performance in the Indonesian basic industry |
| title_full_unstemmed | Determinants of stock price performance in the Indonesian basic industry |
| title_short | Determinants of stock price performance in the Indonesian basic industry |
| title_sort | determinants of stock price performance in the indonesian basic industry |
| topic | price earning ratio basic industry chemical industry determinants |
| url | https://journal.uinmataram.ac.id/index.php/jed/article/view/8017 |
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