Determinants of stock price performance in the Indonesian basic industry

Q3 Business, Management and Accounting

International Journal of Management and Enterprise Development Pub Date : 2023-08-07 DOI:10.20414/jed.v5i3.8017

Novinda Krisna Putri, Dian Martha Nurrul Amanah, Nur Aini, Jenia Nur Soelistyoningrum

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引用次数: 0

Abstract

Purpose — This study aimed to identify the determinant factors of the stock price performance, proxied by price earnings ratio, in the basic industry (IDXBASIC) and the causal relationship between them.Method — Data were collected from the Indonesia Stock Exchange for a period of five years, spanning from 2017 to 2021. The purposive sampling method was chosen, and a total of sixty firms were selected for the final sample of this study. This study adopts generalized least squares of panel data analysis using STATA version 13 software.Result — The results revealed that return on equity, debt-equity ratio, price-to-book value, earnings growth, and dividend payout significantly impact the price-earnings ratio (PE) and thus become significant determinants of the price-earnings ratio (PE). On the other hand, market return and firm size showed no significant influence on the price-earnings ratio.Contribution — This study's academic contribution is its specific focus on the Indonesia Basic Industry (IDXBASIC) and exploration of the factors influencing the Price-Earning Ratio (P/E ratio) within this sector, filling a significant gap in the literature and offering valuable insights for investors, policymakers, and market participants.

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决定印尼基础产业股价表现的因素

目的:本研究旨在确定以市盈率为代表的基础产业(IDXBASIC)股票价格表现的决定因素及其因果关系。方法-从2017年到2021年，从印度尼西亚证券交易所收集了为期五年的数据。选择有目的的抽样方法，共选择60家公司作为本研究的最终样本。本研究使用STATA version 13软件对面板数据进行广义最小二乘分析。结果-结果显示，股本回报率，债务权益比，市净率，盈利增长和股息支付显著影响市盈率(PE)，从而成为市盈率(PE)的重要决定因素。另一方面，市场回报和企业规模对市盈率没有显著影响。贡献-本研究的学术贡献在于其对印尼基础产业(IDXBASIC)的特别关注，并探讨了影响该行业市盈率(P/E Ratio)的因素，填补了文献中的重大空白，为投资者、政策制定者和市场参与者提供了有价值的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Management and Enterprise Development Business, Management and Accounting-Business and International Management

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： IJMED is a major international research journal dedicated to business development strategy and entrepreneurship policy as well as management processes in an international and cross-cultural context. IJMED provides a venue for high quality papers including theoretical research articles, evidence-based case studies and practical applications seeking to explore best practice and investigate strategies for rapid growth management in SMEs. IJMED has a history of contributing to the academic literature, providing conceptual and practical insights and generating innovative ideas for organizational enterprise. Topics covered include: -SMEs'' start-up development, corporate venturing- Technological opportunities, new firm creation, valuation- Technological adoption, technology transfer, technopreneurship- Joint ventures/alliances, franchising and corporate ownership- Business incubator development strategy- Economic and social entrepreneurship- Virtual coaching services for SMEs- SMEs and entrepreneurship policy- Start-up cognitions/behaviours- Halo effect, technology licensing- Long-run technology investments- Knowledge management/technology strategy in SMEs- Managing rapid growth, accelerating competitive effectiveness- Strategy decision speed and SME performance- Entrepreneurs in non-profit sector.