Jurnal Akuntansi dan Keuangan
Vol. 25 No. 2 (2023): NOVEMBER 2023

The Nexus between Corporate Financial Ratio and Price Earnings Performance: Evidence from President Election Period in Indonesia

Suham Cahyono (Universitas Airlangga)
Hendri Arya Fernando (Universitas Airlangga)
Rieswandha Dio Primasatya (Universitas Airlangga)



Article Info

Publish Date
29 Aug 2023

Abstract

This research aims to obtain an empirical overview of the influence of financial performance on stock prices in situations of political uncertainty in Indonesia. Our sample includes all non-financial public companies listed on the Indonesia Stock Exchange from 2011 to 2019, totalling 1,899 company-years. This study uses fixed-effects regression to test the hypothesis. The researchers found that financial performance positively and negatively affects stock prices. Specifically, we found a negative relationship between financial performance proxied by Return on Equity and Debt to Ratio. In contrast, liquidity, return on Assets, and Net Profit Margin have a negative effect on financial performance. Furthermore, our evidence becomes unique when in conditions of political uncertainty, where more financial performance has a negative impact on stock prices. This study provides practical and theoretical implications to fill gaps in previous literature regarding financial performance and its influence on stock prices.

Copyrights © 2023






Journal Info

Abbrev

aku

Publisher

Subject

Economics, Econometrics & Finance

Description

The Jurnal Akuntansi dan Keuangan (JAK) is a peer-reviewed journal, published biannually in May and November by The Institute of Research and Community Outreach, Petra Christian University, Surabaya, Indonesia. The JAK invites manuscripts in the various topics include, but not limited to, functional ...