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4.9 Leverage Influence on the Stock
Market
Results of testing the partial regression
coefficients through t test states that leverage using
indicators of debt to equity ratio (DER) negatively
affect the stock price with the value of t statistic of -
2.2332. These results indicate that if leverage
increases, the share price will decline. Conversely,
when leverage decreases, it will increase the
company's stock price so the leverage has a negative
correlation to the stock price. Thus the results of
research on leverage variable according to the initial
hypothesis, and in line with the theory that companies
that use excessive debt can result in a decrease in the
value of the company and adversely affects the
company's stock price.
Increasing the value of DER in the mining sector
companies led to a decline in stock prices. This is
because the use of debt in a larger amount of capital
owned by perusahhaan will cause interest expense.
The greater the debt owned by the company, the
greater the interest burden borne by companies that
profit resulting company would be small. This
resulted in reduced interest of investors to invest in
the company so that the company will be a shortage
of funds and lead to lower stock prices in the capital
market. Investors tend to prefer a low-level DER due
to low risks to be borne. If a company DER higher
then the company's stock price will be low because
when the company makes a profit, the company uses
the profits to pay down debt rather than distribute
profits.
Thus DER variables in this study are highly used
by the investor as consideration for investing so that
the results of this study are supported by the results of
research Pandansari (2012) which stated that the
leverage with DER indicators negatively affect the
stock price.
4.10 Influence Activities on the Stock
Market
Results of testing the partial regression
coefficients through t test states that the activities
using the indicators of total asset turnover (TATO)
positive effect on the stock price with the value of t
statistic of 1.6881. These results indicate the extent to
which assets the company has used in the activities of
the company and also shows how many times the
operating assets spins in a certain period. The higher
the activity of a company, the better for the company's
assets can be used effectively in order to create a sale
so that the profits that will be generated is also high,
then the better financial performance and impact on
the company's stock price increases. Conversely,
when the value of the low corporate activity will show
less optimal management of the company in the use
of assets to generate sales. This makes the company's
financial performance is bad and decrease the price of
shares in the capital market.
Thus the results of research on variable activity
according to the initial hypothesis, and in line with the
theory that the low value of the activity reflects that
the company has not been effective in managing their
assets. Impairment TATO on mining companies led
to a decline in stock prices. This is because the total
asset turnover as measured by sales volume is not
necessarily able to increase profits because there are
some of the profits are used to pay the company's
debt. The results are consistent with the results of
research and Oetomo Suwahyono (2006) which states
that the activity of the indicator TATO positive effect
on stock prices.
5 CONCLUSIONS
Based on the results of the discussion and the research
that has been done it can be concluded as follows:
Overview fundamentals consist of profitability by
using indicators Return on Assets (ROA) in the
mining sector companies listed on the Indonesian
Stock Exchange has continued to decline each year
with an average value of 0.05 or 5%, overview
fundamentals consist of liquidity by using indicators
Current Ratio (CR) in the mining sector companies
listed on the Indonesian Stock Exchange has
continued to decline each year with an average value
of 1.97 or 197%, overview of the fundamental factors
consisting of leverage by using indicators Debt to
Equity Ratio (DER) on mining companies listed on
the Indonesia Stock Exchange showing an upward
trend every year with an average value of 1.01 or
101%, overview of the fundamental factors that
consists of activities by using indicators Total Asset
Turnover (TATO) on mining companies listed on the
Indonesian Stock Exchange has continued to decline
each year with an average value of 0.69 or 69%,
illustration stock price as seen from the annual
closing price on mining companies listed on the
Indonesian Stock Exchange has continued to decline
each year with an average value of USD 945.- per
share, simultaneously fundamentals consist of
profitability, liquidity, leverage and activity influence
the stock price on mining companies listed on the
Indonesia Stock Exchange, fundamental factors
The Influence of Fundamental Factors on Stock Price - Research to Mining Companies Listed on The Indonesia Stock Exchange
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