The Impact of Financial Ratios on Indonesian Telecommunication Stocks in 2019-2023
Article Sidebar
CR,
DER,
telecommunication,
stock price
Main Article Content
Abstract
This research examines the relationship between the financial ratios ROE, CR, and DER with the stock price in the Indonesian telecommunication industry. Using data from 2019 through 2023 for selected telecommunication companies listed on IDX, the study applies descriptive statistics and regression analysis to see the impact of these ratios on the movement of stock prices. The findings also show that ROE has a positive significant influence on stock prices, while the Debt-to-Equity Ratio negatively affects the prices of stocks. On the contrary, the Current Ratio does not significantly affect stock prices. In this regard, investors-especially from the middle class-should give more emphasis to profitability and leverage ratios as key elements in investment decisions in telecommunication stocks.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
Adistriana, I. et al. (2024). The Influence Of Return On Equity, Sales Growth And Debt To Equity Ratio On Stock Prices In Pharmacy Companies Listed On The Indonesian Stock Exchange During The Pandemic Period 2019-2021. International Conference on Economics, Management, Business, and Accounting, 1(1), 203–218.
Ardiana, T. E., & Ulfah, I. F. (2022). Manufacturing Company's Stock Price: Effect Dividend per Share, Earning per Share, Return on Investment, Price Book Value Listing in BEI. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(2), 675-685
Dwijayani, H., et al. (2023). Financial Ratios and Stock Return in the Food and Beverage Company. Ekbis: Jurnal Ekonomi dan Bisnis, 7(1), 23-33. Findings: CR, ROE, and ROA significantly affect stock returns while DER and TATO do not
Dwiyanthi, H. et al. (2021). The Influence of Financial Ratios on Share Prices (Case Studies on Property & Real estate Companies in the Construction and Building Sub-Sector Listed on the Indonesia Stock Exchange). 1st ICEMAC 2020: International Conference on Economics, Management, and Accounting
Firdaus, F. et al. (2020). The Effect of Financial Ratios on the Firm Value. Solid State Technology, 63(4), 4820-4829
Gitman, L. J., & Zutter, C. J. (2012). Principles of Managerial Finance. Pearson
“Jumlah Kelas Menengah Indonesia Dinyatakan Turun, Apa Penyebabnya?”. (2024). Detik News. https://news.detik.com/abc-australia/d-7528069/jumlah-kelas-menengah-indonesia-dinyatakan-turun-apa-penyebabnya
Lusiana, H. (2020). The Effect of Return on Equity (ROE) and Earning per Share (EPS) on Stock Prices In Indonesia Stock Exchange 2015-2018. Ilomata International Journal of Management, 1(3), 132-138
Manoppo, C. P. (2015). The Influence of ROA, ROE, ROS, and EPS On Stock Price, Jurnal EMBA, 3(4), 691-697
Monica, N. C., & Hasanuh, N. (2020). The Effect of Return on Assets, Return on Equity and Earning per Share on Stock Price (Empirical Study on Company Sub-Sector Advertising, Printing and, Media Listed on Indonesia Stock Exchange Period 2015-2018). Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi), 4(3),1506-1515
Novelia, A (2024). The Influence of Return On Asset, Debt to Equity Ratio and Earning Per Share on Stock Price PT Hanjaya Mandala Sampoerna Tbk Period 2010-2023. Indonesian Financial Review, 4(1), 59–77.
Prastika, J., et al. (2023). The Impact of Firm Financial Fundamentals on Stock Performance: An Empirical Evidence on Indonesian Telecommunication Sector. E3S Web of Conferences 426, 02140.
Prayoga, J., & Wahyudi, A. S. (2021). Effect Of Financial Ratios To Stock Return On Companies Registered At Idx. E-Jurnal Manajemen Tsm, 1(3), 33-48
Sapariyah, R. A., & Chrisandana, G. O. (2019). The Effect Of Financial Ratios On Stock Return Study On Food And Beverages Companies Listed On Indonesia Stock Exchange During 2015-2017. Advance: Jurnal Akuntansi, 6(1), 45-56
Subastyan, G. M. (2024). “The Effect of Financial Ratios on Stock Prices”. Eduvest – Journal of Universal Studies, 4(3), 1245-1257
Taufiq, M. I. (2022). Effect of Financial Ratios on Stock Prices in Cigarette Companies. Point of View Research Accounting and Auditing, 3(4), 341 – 354
Ummah, L. Z. et al. (2023). The Effect of ROA and ROE on Stock Prices During the Pandemic. Proceedings of Islamic Economics, Business, and Philanthropy, 2(2), 1-19
Wulansari, T., Sulastri., Widiyanti, M., & Adam, M. (2023). The Effect of Financial Ratio on Stock Price in Telecommunications Sector Companies Listed on the Indonesia Stock Exchange. International Journal of Business, Economics & Management,6(1), 1-9.
Yusnelly, A. et al. (2022). Analysis Of The Influence Of Cr, Roe, Npm, Eps And Der On Stock Prices Of Lq45 Index Companies Listed In Indonesia Stock Exchange From 2017-2018. Proceeding 2nd International Conference on Business & Social Sciences (ICOBUSS)
Zarefar, A., & Armadani. (2024). Do Fundamental Financial Ratios Affect the Company's Stock Price? Indonesia Evidence. Jurnal Akuntansi dan Keuangan Indonesia, 21(1), 49-63.