Indonesian Journal of Law and Economics Review
Vol 18 No 4 (2023): November

Financial Factors Shaping Stock Prices: Evidence from Food and Beverage Companies (2016-2020)

Silvia Al Vionita (Universitas Muhammadiyah Sidoarjo)
Wisnu Panggah Setiyono (Universitas Muhammadiyah Sidoarjo)



Article Info

Publish Date
15 Sep 2023

Abstract

This research employs quantitative methods and secondary data analysis to investigate the relationship between financial variables and stock prices in the food and beverage industry. Utilizing a purposive sampling method, 50 samples from 10 food and beverage companies listed on the IDX are examined over a five-year period. The study reveals that Net Profit Margin and Capital Structure both exert a positive and significant influence on stock prices, whereas Profitability demonstrates a significant negative impact. Notably, when considered together, these three variables collectively influence stock prices. This study's findings have implications for investors, financial analysts, and policymakers, offering insights into the complex interplay between financial metrics and stock market performance within the food and beverage sector. Highlights: Financial Metrics Impact: Net Profit Margin and Capital Structure positively influence stock prices, while Profitability has a negative impact. Sector-Specific Insights: The study focuses on the food and beverage industry, offering sector-specific implications for stakeholders. Methodological Approach: Quantitative analysis using secondary data and multiple linear analysis techniques informs the research findings. Keywords: Stock Prices, Financial Factors, Food and Beverage Industry, Secondary Data Analysis, Multiple Linear Analysis.

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Journal Info

Abbrev

ijler

Publisher

Subject

Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

Description

Indonesian Journal of Law and Economics Review (IJLER) is published by Universitas Muhammadiyah Sidoarjo four times a year. This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of ...