INFLUENCE OF INTERNAL AND EXTERNAL FACTORS ON STOCK PRICE
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Date
2010-11-25
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Publisher
Faculty of Economics and Management Universiti Kebangsaan Malaysia
Abstract
This study aimed to investigate the influence of internal factors and external partial and simultaneous to changes in stock prices. Internal factors used were Return on Equity (ROE), Cash Flow per Share (CFPS), and Net Asset Value (NAV). External factors used are exchange rates (exchange rate) and interest rates. Research conducted on 19 listed companies from 28 issuers listed banks in Indonesia Stock Exchange, selected through purposive sampling technique that is consistent with the criteria listed there since 2004 until 2008, and also has a comprehensive financial reporting data. The research method used is associative method. The statistical methods used to test the hypothesis is simple and multiple linear regression, t test, F test and R test with a significance level of 5%. From the research results show that simultaneous internal factors and external have a significant effect on stock prices. This is shown from the F value 49.524> F table 2.317. Partially, only the Net Asset Value else who has a significant influence (t 15.092> 1.987 t table). Meanwhile Return on Equity, Cash Flow per Share, exchange rate and interest rates have no significant effect on stock prices. Return on Equity has a value-t table -1987 ≤ t ≤ 0.076 1.987 table. Cash Flow per Share has a value-t table -1987 ≤ t ≤ -0.066 1.987 t table. Exchange-value t table -1987 ≤ t ≤ -1.126 1.987 t table. While interest rates have a value-t table -1987 ≤ t ≤ -0.567 1.987 t table
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Keywords
Finance, Investment