The Comparative Analysis of Financial Performance and Its Effect on Stock Prices of Banking and Consumer Goods Companies

Abstract

This present study carried out a comparative analysis of financial performance and its effect on the stock prices of consumer goods and banking companies, both simultaneously and partially, and analyzed financial ratios that affected stock prices. The data in this research were collected through a panel data collection technique in a five-year lapse starting from 2012 to 2016. The objects of the research were consumer goods and banking companies registered on the Indonesia Stock Exchange. This research was categorized as causal research using the quantitative method and data analysis was performed using multiple linear regression. The results showed that the performance of the consumer goods companies was better than banking companies. Simultaneously, all research variables significantly influenced the stock prices of both banking and consumer goods companies with a significance value of 0,000. Partially, the variables that influenced banking stock prices were price book value and ROE. Whereas the shares of consumer goods were significantly affected by net profit, margins, and debt to equity ratio.