FUNDAMENTAL EFFECT OF MICRO ECONOMICS ON STOCK PRICES IN THE JAKARTA ISLAMIC INDEX

Abstract

This study aims to examine the effect of microeconomic fundamentals as proxied by financial ratios to stock prices in the Jakarta Islamic Index (JII) group. The population in this study were companies that were consistently incorporated in JII for the period 2011-2015 and were analyzed using multiple linear regression. The results of this study indicate that there are three variables that have a significant influence on Islamic stock prices in the JII group, namely the market ratio proxied by EPS, the leverage ratio proxied by DAR and the activity ratio proxied by TATO, while the profitability ratio as proxied by ROA and liquidity ratio as proxied by CR. partially does not affect the price of sharia shares at JII. However, simultaneously effect. This indicates that the three proxies that have a positive effect have a relationship with agency problems, namely between the principal (shareholder) and the agent (management).