Fundamental Analysis to Affect Stock Price

Abstract

This study aims to determine whether fundamental analysis or micro analysis using financial
performance has an influence on stock prices. The financial performance used in this study is the liquidity
ratio with the current asset as the proxy; the debt ratio using the debt to equity ratio; the proxies used in the
turnover ratio are total asset turnover, net profit margin as a proxy for profitability ratios and market ratios
with a proxy price to book value. The object of this study is companies listed in the Consumer Goods
Industry on the Indonesia Stock Exchange for the period 2015-2019 with a sample of 29 companies. The
results of the study show that financial performance affects stock prices with an effect of 56.13%. Partially,
the liquidity ratio and debt ratio have a negative effect on stock prices, while the profitability ratio has a
positive effect on stock prices. However, turnover ratios and market ratios have no effect on stock prices.
Suggestions for this study are investors have to pay attention to the movement of ratios that affect stock
prices, companies to maintain financial ratios that affect stock prices; other researchers add other variables
such as macro analysis and industry analysis.