FUNDAMENTAL IMPACT ON SHARE PRICES: EVIDENCE FROM INDONESIA

Authors

  • Dwi Inggarwati Rahayu , Bustanul Ulum , Rusdiyanto ,Mochamad Syafii , Dini Ayu Pramitasari , Firdaus Indrajaya Tuharea

Abstract

This paper aims to evaluate the fundamental impact on share price of banking sector companies
listed on the Indonesian Stock Exchange. This paper uses a quantitative approach with the process of
finding knowledge using data in the form of numbers as a generalizable tool to prove a hypothesis.
Variable data to measure fundamentals as measured by Return on Assets, Return on Equity and Net
Profit Margin are taken from the company's financial statements and the Indonesia Stock Exchange
website at www.idx.co.id, www.ojk.go.id, www.bi.go.id and www.yahoofinance.com.
The results of this study indicate that Return on Assets and Net Profit Margin have a positive
and significant effect on share prices, so that these findings can be used by investors in conducting
fundamental analysis that has relevant information. Meanwhile, Return on Equity has no effect on
stock prices, meaning that the Return on Equity tends not to have value relevance to the price of
banking shares listed on the Indonesia Stock Exchange. The research results are recommended for
banking customers to increase the effectiveness and efficiency of banking performance and to
contribute to the banking literature.

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Published

2020-12-04

How to Cite

Dwi Inggarwati Rahayu , Bustanul Ulum , Rusdiyanto ,Mochamad Syafii , Dini Ayu Pramitasari , Firdaus Indrajaya Tuharea. (2020). FUNDAMENTAL IMPACT ON SHARE PRICES: EVIDENCE FROM INDONESIA. PalArch’s Journal of Archaeology of Egypt / Egyptology, 17(6), 9090 - 9104. Retrieved from http://mail.palarch.nl/index.php/jae/article/view/2378