Companies Financial Performance and Macroeconomics Condition, How They Relate to Share Price

摘要

The idea behind this research is that theoretically macroeconomics condition as well as financial performance together should correlate with companies stock price. The main purpose of this study is to know how strong is the correlation of companies financial performance and macroeconomics condition to company stock price in consumption sector in Indonesia stock exchange market. The independent variables uses in this study are: price earnings ratio, price to book value ratio, net profit margin, gross domestic product, inflation rate and BI-rate; whereas the dependent variable is companies stock price. Population in this study is consumption sector in Indonesia stock exchange market. Sampling method use in this study is stratified random sampling. This study uses multiple regression models. The data use in this study is quarterly data from 2009 until first quarter of 2017. The result of the study shows that there are strong correlations between all independent variables with stock price and found that there are significant correlation between company stock price with price earnings ratio, price to book value, net profit margin, return on equity, gross domestic product, inflation rate and BI-rate simultaneously.