Created by :

1. Ade Liana Fajrin 1050302011210012. Fitria Intan A. 1050302001210143. Mei Yuana A. 105030201121012

The Influence of Debt Ratio (DR), Price to Earning Ratio (PER), Earning Per Share (EPS),

and Size toward Stock Pricestudy case : industry company listed in Bursa Efek Indonesia

Financial Ratio

Background

Financial Report

Size Price to Earning Ratio(PER)

Debt Ratio(DR)

Earning Per Share(EPS)

STOCK PRICE

Theoretical Aspect

1. Debt RatioCan help investors determine a company’s level of risk

2. Price to Earning Ratio

3. Earning Per Share

4. Size

5. Company Value

6. Share

The most important variable in determining a share’s price

Is an equity valuation measure (how expensive a stock)

Amount of asset owned by company

1. Book value per share2. Appraisal value3. Stock market value4. chop-shop value5. Cash flow valueIs one of new fund

resource come from company that derivative from capital owner in consequence company have to give dividend.

Is successful management measurement in past prospect and future prospect to ensure shares holder

definition Basic factors 1. Macro2. micro

1. Fundamental emiten condition2. Supply & demand law3. Interest rate4. Currency5. IHSG6. News & rumor

Conceptual model

Hypothetical model

Type of research in this study is explanatory

research with quantitative analysis approach

This study took place in the Indonesia Stock Exchange Corner in the Faculty of Economics, University of

Brawijaya Malang

The population are all industrial firms listed on

the Indonesia Stock Exchange (IDX) as many as 125 companies. Sampling using purposive sampling technique as many as 38

companies

Method of data analysis used in this study is a

method of multiple linear regression statistical

analysis and hypothesis testing.

Kinds of variables:Independent Variables

Dependent variable firm's stock price

The data used are secondary data

data collection techniques with methods of documentation •Multiple linear regression analysis was

used to determine the strength of the influence of independent variables to

the variable bound together.

Hypothesis Testing Testing hypotheses include the F

test and t test

Methodology

data presentation

Recapitulation Development of DR, PER, EPS, Size, and Stock Price from Sample Data

Period 2009-2011 (in %)

Data sources : table “The Develop of DR, PER, EPS, Size, and Stock Price in sample industry companies”

data analysistable test result of multiple linear regression

1. Taken together the variable of DR (X1), PER (X2), EPS (X3), and Size (X4) give influential significant on the stock price variable (Y). F > table F (198,671 > 6,39) or sig F < 5% (0,000 < 0,05).

2. DR variable have a significant influence on the stock price is equal to -6,313 for t-test, t-table value as big as 1,671. 6,313 > 1,671 or sig. t < 5% (0,000 < 0,005)

3. PER variable have a significant influence on the stock price is equal to 9,945 for t-test, t-table value as big as 1,671. 9,945 > 1,671 or sig. t < 5% (0,000 < 0,005)

4. that EPS variable have a significant influence on the stock price is equal to 22,250 for t-test, t-table value as big as 1,671. 22,250 > 1,671 or sig. t < 5% (0,000 < 0,005)

5. DR variable have a significant influence on the stock price is equal to 2,777 for t-test, t-table value as big as 1,671.2,777 > 1,671 or sig. t < 5% (0,000 < 0,005)

Y = 1,059 – 0,015 X1 + 0,024X2 + 0,864X3 + 0,156X4

Conclusion and recommendation

1. The influence of the four independent variables simultaneously with stock price can be seen in Adjusted R square as 0,875 means that together with other four variable to give the impact 87,5 % for stock prices. So, simultaneously give significant impact to stock market, can be accepted.

2. Experiment result that have done partially can be seen that Earning Per Share (EPS) variable has biggest impact that other four independent variable that give impact to stock prices.

1. Industrial company have to increase financial management with increasing financials ratio like PER, EPS, Size and DR so the company stock prices in stock market increase. Research result short=w that PER, EPS and high DR that lower will responded nicely by investor in stock market so this thing can change stock price in stock market increase.

2. For the investor or investor candidate suggested to carefully understand fundamental factor or companies financial ratios before decide to investing in those company. Research result show that fundamental factor that can be measurement before investing in Industrial company that enlisted in BEI is DR, PER, EPS and size.

3. For researcher, we suggested that to increase amount of research year to be more than three years so the shares fluctuation based on fundamental factor impact like DR, PER, EPS and size can describe the real condition.