International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
FACTORS AFFECTING THE STOCK PRICES OF MANUFACTURING
COMPANIES LISTED ON THE LQ45 INDEX OF THE INDONESIA
STOCK EXCHANGE FOR THE PERIOD 2019 Ae 2023 Steven Jonathan Salim1*.
Tannia2 Faculty of social science and humanity.
Universitas Bunda Mulia.
Jakarta.
Indonesia Email: S12210070@student.
*Corresponding Author Submitted: 24-01-2025.
Revised: 26-02-2024.
Accepted: 03-04-2024
ABSTRACT
Thistresearchtaimsttotprovidetempiricaltevidencetregarding the impact of debtotequity ratiot (DER), net profittmargint (NPM), returntontassets (ROA), returntontequity (ROE), current ratio (CR), andtprice earning ratio (PER) variables on the stocktprices of manufacturing companiestlisted on the LQ45 index in the IndonesiatStock Exchangetfor the period of 2019-2023.
This researchtuses secondary data with a quantitative approach and Purposive Sampling applied as the sampling method.
Thetsample usedtintthis research are 14 manufacturing companiestin the LQ45 index category of the Indonesian StocktExchange (IDX) in thet2019-2023 This research has been tested with the SPSS 27 statistical testing tool totprove thethypothesis proposal.
The resultstof the analysistshow thathe researchtvariable simultaneously has atsignificant effectton stock prices and the partialttest results show that the Debto EquitytRatio.
NettProfittMargin.
Return ontAssets.
Return ontEquity, and the Current Ratio have a significant effectton stock prices.
Meanwhile the Price Earning Ratio has notsignificant effectton stock pricestin manufacturing companiestin the LQ45 Index category of the Indonesiantstock exchangetfor the period 2019 - 2023.
Keywords: Stock Price.
Debt to Equity Ratio (DER).
Net Profit Margin (NPM).
Return on Assets (ROA).
Return on Equity (ROE).
Current Ratio (CR).
Price Earning Ratio (PER) INTRODUCTION Asthe economy develops and improves, business competition also increases.
The manufacturing industry has undergone a notable increase in competition, constituting a significant contributor to economic growth in Indonesia (Maria et al.
, 2.
This is shown by the increasing contributiontoftthe manufacturingtindustry sector to thetGross DomestictProduct (GDP) on an annual basis (Kemenperin.
Go.
Id.
As quoted in a press release from (Kemenperin.
Go.
Id.
) In the initial quarter of 2023, the manufacturing industry sector continued to exert the greatest influence on the nation's economic growth.
One of the strategies employed by companies to remain competitivetistselling company shares through the capitaltmarket to obtain additional funding (Puspitasari & Chabachib, 2.
by registering with thetIndonesia StocktExchange as a publicly listed company or "Going PublicAy.
The LQ45tIndex is one type of index in the Indonesian Capital Market, encompassing 45 companies with shares that are actively traded daily on the stocktexchange and whose prices continuously fluctuate in line with tradingtvolume (Lusiana & Avriyanti, 2.
Companies included in the LQ45 index are selected based on specific criteria, resulting in thesetshares having higher trading liquiditytcompared to other companies and possessing substantialtmarket capitalization, making them attractive to investorstin the capitaltmarket (Zahro & Purnamawati.
Investorstare naturallytinclined to invest their funds in companiestthat demonstrate stability, exhibit strong financialtperformance, are competitive in their market, and offer a high rate https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
oftreturn (Maria et al.
, 2.
If a company demonstrates performance that is evaluatedtpositively, investors will gain confidencetand increase their interesttin investing funds in thattcompany, consequently causing its share price to riset(Kundiman & Hakim.
One approach used to evaluate atstock is FundamentaltAnalysis, which relies on the financial data of the company (Munandar, 2.
The company indicators used in the fundamentaltanalysis of this research include: Debt totEquity Ratio or DER.
Net ProfittMargin or NPM.
Return on Assetstor ROA.
Return ontEquity or ROE.
CurrenttRatio or CR, and Price EarningtRatio or PER.
DERtindicates the extent of a firm's debt compared to its equitytcapital (Solihin et al.
, 2.
This debt arises from situations where all capital requirements cannot be met with equity capital or proceeds from the sale of equity.
As a result, firms often seek additional capital through loans (Solihin et al.
, 2.
When the DER rises, it signifies that the firm is increasingly financing its operations with debt rather than equity (Munandar, 2.
According to Sawir in (Nurdin, 2.
companies with high debt utilization tend to face greater risks compared to companies with no debt or low debt levels, because in addition to facing business risks, the company will also bear financialtrisks.
Nevertheless, this additional risk may potentially increase company profits, as the company obtains additional capital.
This statement aligns with the Trade-Off Leveragettheory (Modigliani & Miller, 1.
which reveals thattcompanies that can generate returnstfrom debt-financedtinvestments higher than the interesttcosts paid on that debt will provide greatertreturns to capital owners, which can result in an increase in the company's stocktprice.
This istconsistent withtthe findingstof (Ery Yanto et al.
, 2021.
Nurdin, 2015.
Sukesti et al.
that Debt EquitytRatio (DER) has a impact on stocktprice, but contradicts the findings of (Munandar, 2022.
Rini Tri Hastuti, 2020.
Solihin et al.
, 2.
that DER has no significant impact on stocktprice.
ThetNet ProfittMargin (NPM) ista ratio thattmeasures thetprofit after taxesta company can earn from each activity oftsales (Rohman & Afkar, 2.
Increasing NPM means the greater the amount of profit can betgenerated.
The higher thetNPM, the greater the firm's ability to return profitstto investors.
This information encourages investors to put their money into the company, according to (Solihin et al.
, 2021.
Sukesti et al.
, 2.
, a higher NPM leads to a higher stocktprice with significant impact, while (Ery Yanto et al.
, 2021.
Rohman & Afkar.
Sahari & Suartana, 2.
stated that NPM has no impact on companyAos stocktprice.
ROA measures the total return ontinvestment by comparing after-tax net income totassets (Sahari & Suartana, 2.
Return ontassets (ROA) is an indicator of howteffectively a company's managementtuses its assets totgenerate profits.
a hightROA number indicates that the company is able to generate significant profits from each capital invested in its assets.
Conversely, a low ROA may indicate inefficiencies in corporate operations and less than optimal use of assets to generate added value (Sukesti et al.
, 2.
This is consistent with thetfindings of (Rohman & Afkar, 2018.
Solihin et al.
, 2021.
Sukesti et al.
, 2.
thattROA has a significant impactton stock prices.
However, this contradicts the findings of (Ery Yanto et al.
, 2021.
Sahari & Suartana, 2.
that ROA has no significanttimpact on stock prices.
Thetnext fundamental factor is Return ontEquity (ROE), which istdetermined bytcomparing after-tax profits to totaltcapital (Sahari & Suartana, 2.
the highertthe ROE, the bettertthe https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
performance of capital management in generatingtprofits for shareholders.
It can be said that the company is effectively and efficiently using capital from shareholders to generate profits (Cipta et al.
, 2.
A high ROE figure can signal to shareholders that the return on investment received will be greater (Lumowa, 2.
This indicates that ROE has an influence ontvalue.
This is consistent with the findings of (Ery Yanto et al.
, 2021.
Sahari & Suartana, 2.
that ReturntontEquity (ROE) has atimpact on firm value, but contradicts the findings of (Rohman & Afkar, 2.
that it has no impact on firm value.
ThetCurrenttRatio (CR) is a financialtratio that evaluates a company'stability totpay off its short-term debts withtits liquid assets (Ahmad Solihin et al.
, 2.
With high debt utilization in the manufacturing industry, a company's short-term obligations will also increase in the form of debt interest payments.
A high CurrenttRatio indicates that the company has good liquidity, meaning the company is capable of meeting its short-term obligations.
This condition naturally attractstinvestors' interest to invest, which in turn increases the demand for shares and impacts the rise in stock prices.
This is consistent with the findings of (Ery Yanto et al.
, 2.
that CR has a impacttontstock price, but contradicts the findings of (Kundiman & Hakim, 2017.
Nurdin, 2.
that it has no significanttimpact.
The next fundamental factor is the PricetEarningtRatio (PER).
PERtis a commonly used metric to evaluate a company'stprofitability and assess the market'stvaluation of itststock.
It is calculatedtby dividingtthe stock price bytthe company'stearnings per share (Solihin et al.
Considering that the performance of the manufacturing industry is increasingly improving, the PER ratio is important to analyze, because a hightPER indicates that company performance is increasing (Olla & Mareta, 2.
, and indicates a greater possibility for the company to grow and develop, thereby increasing company value (Solihin et al.
, 2.
However, an excessively high PER may indicate that the offered share price is already high or not rational (Olla & Mareta, 2.
This istconsistent with thetfindings of (Sholihah & Tjaraka, 2.
that Price Earning Ratio (PER) has atsignificant effect on stocktprice but contradicts the findings of (Olla & Mareta, 2023.
Rohman & Afkar, 2018.
Solihin et al.
, 2.
that it has no effect on stocktprice.
Due to thetcontext of the problem above andtthe contradictory results of previouststudies, this study is important and the researcher has conducted a study on the factorstthat affect the stock
LQ45
Index IndonesiantStocktExchange fromt2019 to 2023, namely Debt to EquitytRatio (DER).
Net ProfittMargin (NPM).
Returnton Assets (ROA).
Return ontEquity (ROE).
Current Ratio (CR), andtPrice Earning Ratio (PER).
According tot(Brigham & Houston, 2.
signaling theory includes actions taken by companies to achieve future prospects.
This can be in the form of efforts by the company to provide financial information to investors.
Signaling Theory explains that the use of financial information serves to provide either positive or negative information to its users, which subsequently aids in financial decision-making.
Due to information asymmetry between company owners and outside parties like investors, signaling theory aims to encourage information users or management to transmit the right signals (Adelia et al.
, 2.
Therefore.
Signaling Theory indicates that information about favorable or unfavorable financial reports could be used by investors when choosing investment decisions in a company.
In other words, this information will cause stock prices to fluctuate (Adelia et al.
, 2.
Financial statements that incorporate financial performance and clear, comprehensive, and https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
transparent notes are used to display the company's facts.
Giving a true and thorough image of the business's financial situation is the goal (Adelia et al.
, 2.
Stock Price The most recent value of a stock listed or traded on the stock market is known as the stock Supply and demand trends for shares on the stock exchange affect this price, which is determined by market participants.
The valuetof atcompany to investors is reflectedtin its stock pricet(Sukesti et al.
, 2.
Since stocks are one of the most promising investment categories, it is crucial and essential for investors to evaluate stock prices before making an investment (Cipta et al.
, 2.
Debt EquitytRatio (DER) The Debt Equity Ratio (DER) is atratio that compares atcompany's total debto its totaltequity (Cipta et al.
, 2.
According to Jusuf, as cited by (Ananda et al.
, 2.
this ratio indicates the extent to which equity can cover all of the company's debt.
Furthermore, this ratio can be understood as a comparison of the money put in the business by the owners and the money received from other sources.
Consequently, the greater this ratio, the greater the financial danger to the organization.
Potential investors typically steer clear of companies with significant financial risk because of their poor stock returns (Bambang Riyanto, 2.
Net ProfittMargin (NPM) Sudana asserts that the Net ProfittMargin is a gauge of a business's capacity to produce net profit from sales, as stated in (Ananda et al.
, 2.
A highertnet profit margintindicates atmore productive business, which in turn encourages investors to put money into the company (Bastian & Suhardjono, 2.
Return on Asset (ROA) Sudana, as quoted in (Ananda et al.
, 2.
, claims that ROA is atmeasure of a companyAos abilitytto use all of its assetstto generate nettprofit.
A greater ROA indicates more effective utilization of the company's resources.
Stated differently, the corporation can make more money with the same quantity of assets, and vice versa.
ReturntontEquity (ROE) ROE is thetratio of profit earned by a companytin a certain way to be returned to investors (Rini Tri Hastuti, 2.
Kasmir, as quoted in (Supriyadi, 2.
explains that ROE is the ratiotof net profit afterttax measured by equity.
ROE's growth indicates that a company's prospects are improving because it is able to increase its profits.
CurrenttRatio (CR) The CurrenttRatio (CR) is the ability to repay short-term debt withtthe companytcurrent assets (Heikal et al.
, 2.
According to Sawir in (Faujiah & Nursito, 2.
A low Current Ratio (CR) generally indicatestliquidity problems.
however, an excessively high CR can also suggest inefficienttmanagement of liquiditytsources.
Surplus current assetstshould be utilized to pay dividends, settle long-term debt, or be investedtin projects that can yield higher returns (Kundiman & Hakim, 2.
Therefore, it is crucial for company management to achieve a proper balance in liquidity management.
Consequently, the company can ensure sufficient liquidity to meet short-term obligations while maintaining efficiency in capital utilization (Anisyah & Supriyadi, 2.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
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ISSN: 2987-1972
Price Earning Ratio (PER) The PricetEarningstRatio (PER) is a valuationtratio that comparesta company's current share price totits earningstper share (Olla & Mareta, 2.
A higher PER increases capital holders' interest in investing their capital.
Therefore, it will affect the stock price and the price per share (Aprianti & Wahyuningsih, 2.
The Relationship betweentDebt-to-Equity Ratiot(DER) and Stock Price The relationship betweentthe Debt to Equity Ratio (DER)tand stock price is that whentthe DER increases, investors will view this condition as risky because the company has high financial risk, which could lead to bankruptcy.
Consequently, investors may be reluctant to invest or may withdraw funds, causing the stock price to decline (Zebua et al.
, 2.
However, because debt has a number of benefits over equity financing, businesses frequently use it in their capital structure.
One advantage oftdebt financing is the potentialtfor tax savings.
andtprincipal paymentston debt can be considered operating expenses, which can be deducted from the company's income tax (Sukesti et al.
, 2.
The Trade-Off Theory of Leverage (Modigliani & Miller, 1.
states that businesses can profit from taking on debt as long as the tax advantages outweigh the costs of filing for Therefore, up to a certain extent, raising the debt level can increase the company's In order to maximize market value and minimize cost of capital, businesses can select the greatest possible capital structure, which is the idealtmix of debt and equitytfinancing.
However, an increase in debt willthave a detrimental effectton the company's worth if it is not regulated (Sukesti et al.
, 2.
Research by (Ery Yanto et al.
, 2021.
Nurdin, 2015.
Sukesti et al.
, 2.
has demonstrated that the company'stvalue is significantly impacted by the Debt to Equity Ratio.
Basedton the explanationtabove, the followingthypothesistis formulated:
Hypothesis 1: Debt to EquitytRatio (DER) hasta significant effecttontStock Price.
ThetRelationship between NettProfittMargin (NPM)tand Stock Price A high Net Profit Margin (NPM) reflects a company's productive performance and its ability to manage costs effectively, which in turn increases profits from sales (Sukesti et al.
, 2.
The relationshiptbetween NPM and stocktprice is that when NPM increases, investors will view this achievement positively, as the company is seen to be capable of enhancing its net profit from its business activities.
Consequently, investors are more inclined to invest their funds, leading to an increasetin stocktprices (Zebua et al.
, 2.
Research by (Solihin et al.
, 2021.
Sukesti et al.
, 2.
has found evidence that net profit margin (NPM) has a influence on companytvalue.
Basedton the explanationtabove, the followingthypothesistis formulated:
Hypothesis 2: NettProfittMargin (NPM) hasta significant effecttontStock Price.
The Relationship between Returnton Assets (ROA) and Stock Price ROA is calculated bytdividing net profittby the company's totaltassets.
A company with a high ROA indicates that management is capable of managing its assets effectively and efficiently, thus improving the productivity of assets in generating net profit (Rivandi & Lasmidar, 2.
The higher the income, the greater the return for investors, which impacts stock prices (Sukesti et al.
, 2.
This is because it attracts investor interest.
The more investors are interested intbuying the company'stshares, the more positively it affects the increase in stock prices (Rivandi & Lasmidar, 2.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
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ISSN: 2987-1972
Research by (Rohman & Afkar, 2018.
Solihin et al.
, 2021.
Sukesti et al.
, 2.
has proven that Returnton Assets (ROA) has a significanttimpact to the stocktprice.
Basedton the explanationtabove, the followingthypothesistis formulated:
Hypothesis 3: Return on Asset (ROA) hasta significant effecttontStock Price.
The Relationship between Return ontEquity (ROE) and Stock Price Return ontequity (ROE) indicates how much profit a companytcantgenerate with its own capital (Cipta et al.
, 2.
The level of ROEthas a positive relationshiptwith the stock price, so the larger thetROE, the higher thetmarkettprice.
This is because a large ROE indicatestthat the return that investorstwill receive will be high, so investors will be interested in buying those shares, and that causestthe markettprice of the shares to tend totrise (Kundiman & Hakim.
This is consistenttwith the findingstof studies by (Ery Yanto et al.
, 2021.
Sahari & Suartana, 2.
that return on equity (ROE) has a significanttimpact to the stocktprice.
Basedton the explanationtabove, the followingthypothesistis formulated:
Hypothesis 4: Return on Equity (ROE) hasta significant effecttontStock Price.
The Relationship between Current Ratio (CR) and Stock Price A high CurrenttRatio indicates that a company possesses hightliquidity, meaning the companytis capable of meeting its short-term obligations.
This condition will attracttinvestors to invest, increase demand for shares, and ultimately drive up stocktprices in line with the Current Ratiotvalue (Munandar, 2.
However, an excessively hightCR will become a problem, as it indicates an amount of idle funds, which can ultimately reduce the company'stprofitability (Faujiah & Nursito, 2.
Therefore, it is crucialtfor companytmanagement to achieve a proper balance in liquidity management.
Consequently, the company can ensure sufficient liquidity to meet short-term obligations while maintaining efficiency in capital utilization (Anisyah & Supriyadi, 2.
This istconsistenttwith the researchtresults by (Ery Yanto et al.
, 2.
where the Current Ratio (CR) has a significant effect on manufacturing stock prices.
Thus, an increase in the Current Ratio value will be followed by an increase in stock prices.
Basedton the explanationtabove, the followingthypothesistis formulated:
Hypothesis 5: Current Ratio (CR) hasta significant effecttontStock Price.
The Relationship between PricetEarningtRatio (PER) and Stock Price The PER ratio indicates a company's ability to generate a return on investors' capital (Aprianti & Wahyuningsih, 2.
A company with a high PERtvalue signifies that the company has a high growth rate, which can indicate that the market expects future earnings growth (Solihin et , 2.
A hightPER will also increase the interest of capitaltholders to invest their capital, thus impacting a rise in stocktprices (Aprianti & Wahyuningsih, 2.
This is consistent with the findings of (Sholihah & Tjaraka, 2.
that PER hasta significant impact on the stocktprice.
Basedton the explanationtabove, the followingthypothesistis formulated:
Hypothesis 6: Price Earning Ratio (PER) hasta significant effecttontStock Price.
Research Paradigm Based on the research relationship above, the research paradigm is built below:
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
Figure 1.
Research Model RESEARCHtMETHOD This study utilizes a quantitativetresearchtmethodology, relying on secondary data.
The research focuseston manufacturing companies listed on the IndonesiatStock Exchange (IDX) LQ45 Index Category during the period of 2019-2023.
Purposivetsampling, a sampling technique that selects specific units based on predefined criteria, was employed.
The followingtcriteria were applied to select thetsample:
Manufacturing Company that include in the LQ-45 Index category during the observation Manufacturing Company that issued a financial report during the observation year Manufacturing Companies that have been listed for three consecutive years on LQ45 Index during the observation year.
The researchers used statistical analysis and regression tests to confirm the effect of variables included intthe LQ45 index category of the Indonesian Stock Exchanget (IDX) on the stock prices of manufacturing companies from 2019 to 2023.
Statistical analysis using the SPSS27 software, statistical methods with normality, multilinearity, and heterodasticity, followed by multiple linear regression analysis, formulas and partial tests.
F-tests and hypothesis tests using stages that search for correlation coefficients.
to determine the determination coefficient (R.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
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ISSN: 2987-1972
RESULTS ANDtDISCUSSIONS DescriptivetStatisticstTest Table 1.
DescriptivetStatisticstTest Source: Data output SPSS 27 Minimum Maximum Mean Std.
Deviation Stock Price
DER
NPM
ROA
ROE
PER
Valid N .
The dependenttvariable intthis research is Stock Price.
The lowest .
valuetof the stock price was Rp 840 per share for PT HM Sampoerna Tbk.
tock code: HMSP) in 2021.
The highest .
value was Rp 53,000 per share for PT.
Gudang Garam Tbk.
tock code: GGRM) in 2019.
The average .
stock price is 8851.
The standard deviation is DER had a lowest value .
1703 at PT.
Kalbe Farma Tbk.
tock code: KLBF) in 2023 and a highest value .
9284 at PT.
Unilever Indonesia Tbk.
tock code:
UNVR) in 2023.
The average .
value of the DER variable data is 0.
The standard deviation is 0.
NPM had a lowest value .
0627 at PT.
ChandratAsri PetrochemicaltTbk .
tock code: TPIA) in 2022 and a highest value .
4052 at PT.
Pabrik Kertas Tjiwi Kimia Tbk.
tock code: TKIM) in 2022.
The average .
value of the NPM variable is The standard deviation is 0.
ROA had a lowest value .
0303 at PT.
ChandratAsri PetrochemicaltTbk .
tock code: TPIA) in 2022 and a highest value .
3580 at PT.
Unilever Indonesia Tbk.
tock code: UNVR) in 2019.
Thetaverage .
value of thetROA variable data is 0.
The standard deviation is 0.
ROE had a lowest value .
0532 at PT.
Chandra Asri Petrochemical Tbk .
tock code: TPIA) in 2022 and a highest value .
4509 at PT.
Unilever Indonesia Tbk.
tock code: UNVR) in 2020.
Thetaverage .
value of the ROE variable data is 0.
The standard deviation is 0.
CR had a lowest value .
5517 at PT.
Unilever Indonesia Tbk.
tock code:
UNVR) in 2023 and a highest value .
9081 at PT.
Kalbe Farma Tbk.
tock code: KLBF) in 2023.
Thetaverage .
value of the CR variable data is 2.
The standard deviation is 0.
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PER had a lowest value .
8935 at PT.
Chandra Asri Petrochemical Tbk .
tock code: TPIA) in 2023 and a highest value .
3710 at PT.
Chandra Asri Petrochemical Tbk .
tock code: TPIA) in 2020.
Thetaverage .
value of the PER variable data is 22.
The standard deviation is 67.
Classical Assumption Test Normality Test Table 2.
One Sample Kolmogorof-Smirnof Normality Test Source: Data output SPSS 27 Unstandardize d Residual Normal Mean Parameters Std.
Deviation Most Extreme Differences Absolute Positive Negative Test Statistic Asymp.
Sig.
-taile.
c Monte Carlo Sig.
Sig.
-taile.
99% Confidence Interval Lower Bound Upper Bound Based on Table 3.
2, the Asymp.
tSig.
-taile.
tvalue obtained is 0.
176, which meanstthe sig.
value is greater than the significance value of 0.
Thistindicates that the data istnormally Multicollinearity Test Results Table 3.
MulticollinearitytTest
Source: Data output SPSS 27
Collinearity Statistics Model
Tolerance VIF
DER
NPM
ROA
ROE
PER
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
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Table 3.
3 shows that thettolerance values of aretall greater than 0.
10 and the VIF valuestare all lesstthan 10 for each variable in this study.
These values indicate that there is no multicollinearitytamong the variables used in this research.
HeteroscedasticitytTest Result Table 4.
Heteroscedasticity Test Source: Data outputtSPSS 27 The heteroscedasticity test results show that alltindependent variablestused in the study.
DER (X.
with a value of 0.
NPM (X.
with a value of 0.
ROA (X.
with a value of 0.
ROE (X.
with a value of 0.
CR (X.
with a value of 0.
102, and PER (X.
with a value of 904, have values greater thant0.
This indicatestthat there is notheteroscedasticity.
Multiple Linear Regression Analysis Result Table 5.
Multiple Linear Regression Analysis Source:Data output SPSS 27 Unstandardized Coefficients Model Std.
Error 1 (Constan.
DER
NPM
ROA
ROE
PER
Dependent Variable: Stock Price Y = a b1DER b2NPM b3ROA b4ROE b5CR b6PER A https://doi.
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International Journal of Application on Economics and Business (IJAEB) Volume 3.
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Stock Price = 5,525 Ae 0,881DER 4,416NPM Ae 1,049ROA 2,025ROE Ae 0,345CR Ae 0,002PER e Basedtontthe analysis of multipletlineartregression, the meaning of the regression coefficient variables can be explained as follows:
ConstanttValue .
From the multiple lineartregression equation, the constant value .
is a This means that if all independent variables, including Debt EquitytRatio.
Net Profit Margin.
Return ontAssets.
Return ontEquity.
Current Ratio, and PricetEarning Ratio are considered 0 .
or constant, then the dependent variable.
Stock Price, would be 5.
Debt EquitytRatio(DER) Regression Coefficient The coefficient of Debt EquitytRatio (DER) is -0.
This means that if the Debt Equity Ratio (DER) increases by 1%, the dependent variable.
Stock Price, will decrease by -0.
Net ProfittMargin (NPM) Regression Coefficient The coefficient of Net ProfittMargin (NPM) is 4.
This means that if the Net Profit Margin (NPM) increases by 1%, the dependent variable.
Stock Price, will increase by 4.
Return ontAssets (ROA) Regression Coefficient The coefficient of Return ontAssets (ROA) This means that if the Return on Assets (ROA) increases by 1%, the dependent variable.
Stock Price, will decrease by 1.
Return ontEquity (ROE) Regression Coefficient The coefficient of Returnton Equity (ROE) This means that if the Return on Equity (ROE) increases by 1%, the dependent variable.
Stock Price, will increase by 2.
CurrenttRatio (CR) Regression Coefficient The coefficient of CurrenttRatio (CR) is -0.
This means that if the Current Ratio (CR) increases by 1%, the dependent variable.
Stock Price, will decrease by 0.
Price EarningtRatio (PER) Regression Coefficient The coefficient of PricetEarning Ratio (PER) is -0.
This means that if the Price Earning Ratio (PER) increases by 1%, the dependent variable.
Stock Price, will decrease by 0.
CoefficienttDetermination (R.
Result Table 6.
Coefficient Determination (R.
Source: Data output SPSS 27 Model Summaryb Model R Square Adjusted R Std.
Error of the Square Estimate Predictors: (Constan.
DER.
NPM.
ROA.
ROE.
CR.
PER Dependent Variable: Stock Price From Table 3.
6, the processed data results show an adjusted R2 value of 0.
177, or 17.
This value indicates the extent to which the independent variables, namely Debt totEquity Ratio (DER).
NettProfit Margin (NPM).
Returnton Assets (ROA).
Returnton Equity (ROE).
Current Ratio (CR), and Price Earning Ratio (PER), influence the dependent variable.
Stock Prices, in this study, which is 17.
7%, whiletthe remaining 82.
3% is influenced by othertvariables outside of this research.
https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
Simultaneous Test (F-tes.
Result Tabel 7.
Simultaneousttest (F-Tes.
Source: Data output SPSS 27 ANOVAa Model Sum of Squares Mean Square Regression Residual Total Sig.
Dependent Variable: Stock Price Predictors: (Constan.
DER.
NPM.
ROA.
ROE.
CR.
PER Basedton Table 3.
7 above, it is found thathe significancetvalue of 0.
006 is less than 0.
Therefore, it can be concluded that the variables Debt EquitytRatio (DER).
Net Profit Margin (NPM).
Returnton Assets (ROA).
Returnton Equity (ROE).
CurrenttRatio (CR), and PricetEarning Ratio (PER) collectively have a significant affect on the Stock Price.
Partial test (T-Tes.
Result Table 8.
Partialttest (T-Tes.
Source: Data output SPSS 27 Standardized Unstandardized Coefficients Model Std.
Error (Constan.
DER
NPM
ROA
Coefficients Beta Sig.
ROE
PER
Basedton Table 3.
8 above, the resultstshow the following:
Variable DER: The calculatedtt-value for DER is -2.
951 with atsignificance level of 0.
Since thetsignificance level of 0.
004 is less than 0.
05, it can betconcluded thatt DER has a significant negative impact on Stock Price.
Therefore, the null hypothesis (H.
is accepted, and the alternative hypothesis (H.
is rejected.
Variable NPM: The calculatedtt-value for NPM is 2.
236 with atsignificance level of 0.
Since thetsignificance level of 0.
029 is less than 0.
05, it can betconcluded thatt NPM has a significant positive impact on Stock Price.
Therefore, the alternative hypothesis (H.
is accepted, and the null hypothesis (H.
is rejected.
Variable ROA: The calculatedtt-value for ROA is -3.
181 with atsignificance level of Since thetsignificance level of 0.
002 is less than 0.
05, it can betconcluded thatt ROA has a significant negative impact on Stock Price.
Therefore, the null hypothesis (H.
is accepted, and the alternative hypothesis (H.
is rejected.
https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
Variable ROE: The calculatedtt-value for ROE is 2.
607 with atsignificance level of 0.
Since thetsignificance level of 0.
011 is less than 0.
05, it can betconcluded thatt ROE has a significant positive impact on Stock Price.
Therefore, the alternative hypothesis (H.
is accepted, and the null hypothesis (H.
is rejected.
Variable CR: The calculatedtt-value for CR is -2.
047 with atsignificance level of 0.
Since thetsignificance level of 0.
045 is less than 0.
05, it can betconcluded thatt CR has a significant negative impact on Stock Price.
Therefore, the alternative hypothesis (H.
is accepted, and the null hypothesis (H.
is rejected.
Variable PER: The calculated t-value for PER is -0.
862 with atsignificance level of 0.
Since the significance level of 0.
392 is greater than 0.
05, it can betconcluded thatt PER does not have a significant impact on Stock Price.
Therefore, the null hypothesis (H.
is accepted, and the alternative hypothesis (H.
is rejected.
CONCLUSIONS AND SUGGESTIONS
Based on the research results, it can be concluded that Net ProfittMargin (NPM).
Debt Equity Ratio (DER).
Return onttAssets (ROA).
Return on Equity (ROE) and CurrentRatio (CR) significantly influence the stock prices of manufacturingtcompanies listed on the LQ45 Index of the Indonesia StocktExchange during the period 2019-2023.
Therefore, the alternativethypothesis (H.
is accepted, and the nullthypothesis (H.
is rejected.
PricetEarning Ratio (PER) does not significantly influence the stockttprices of manufacturing companies listed on the LQ45 Index of the Indonesia StockttExchange.
Therefore, the null hypothesis (H.
is accepted, and the alternativethypothesis (H.
is rejected.
For investors who want to conduct fundamental analysis to determine stock prices, it is recommended to use the DER.
NPM.
ROA.
ROE, and CR ratios in their considerations.
This is because the resultstof this studytshow that these ratios have a significant influence on thetstock prices of manufacturing companies in the LQ45 index.
For futuretresearchers, due to the limitations of thiststudy, such as the coefficient of determination being only 17.
7% .
eaning that 82.
3% of the influencetcantbe explained by factors outside the variablestin this stud.
, it is suggested that furthertresearch can use other proxies for processing stock prices.
This can improve the strength and output of the research.
Additionally, this study is based on annual data, so for futuretresearch, it is recommended to use quarterly data based on the company's quarterly financial reports to increase the accuracy of the research, as stock prices can fluctuate over time.
This study istlimited to manufacturing companies listedton the Indonesia StocktExchange between 2019 and 2023 and included in the LQt45 index category, especially those companiesthat published their financialtstatements during this period and have been listed for three consecutive years on the LQ45 index category.
Moreover, the scope of variables affecting share prices is deliberately narrowed to DebttEquity Ratio (DER).
NettProfit Margin (NPM).
Return ontAsset (ROA).
Return on Equity (ROE).
CurrenttRatio (CR), and PricetEarning Ratio (PER) for a more focused and accurate analysis.
https://doi.
org/10.
24912/ijaeb.
International Journal of Application on Economics and Business (IJAEB) Volume 3.
Issue 2, 2025.
ISSN: 2987-1972
REFERENCES