Return On Asset, Return On Equity, And Net Profit Margin: Influence Stock Price

Abstract

The company has a goal to fulfill the welfare of investors. Company performance is one of the considerations for potential investors before making investment decisions, because the higher the value of a company, the higher its share price. This study aims to analyze the effect of ROA, ROE, and NPM on stock prices. The analytical method uses panel data regression with a quantitative data approach. This study consists of several test analyses; descriptive testing, classical assumption testing, model selection testing, and hypothesis testing. The findings of this study indicate that ROA, ROE, and NPM simultaneously show a 16% effect on stock prices and partially ROA, ROE, and NPM are significant factors that influence stock prices. The implication is that a company that has a rate of return on assets, a rate of return through capital and liability management, and a high level of income contributes to an increase in profits thereby increasing stock prices.