Analysis of Financial Fundamental Factors and Systematic Risks on Stock Prices of Pharmaceutical Companies Listed on the Indonesia Stock Exchange 2010-2019

Abstract

The study aims to analyze fundamental financial factors and systematic risks to the share prices of pharmaceutical companies listed on the Indonesia stock exchange. This study uses the company's share price as a dependent variable and returns on Return on Equity (ROE), Earning Per Share (EPS), Price Earning Ratio (PER), Price to Book Value (PBV), Debt to Equity Ratio (DER) and Beta stock as independent variables. Samples were taken as many as nine pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) in 2010-2019. The data used in the financial statements of each sample company, published through www.IDX.co.id and www.financeyahoo.com. The analysis method used in this study is a quantitative method, with classic assumption testing and statistical analysis that is multiple linear regression analysis using a standard effect model. The sampling method used is saturated sampling. The analysis results showed that the financial ratio consisting of ROE, DER, and the Beta stock had a negative effect and did not significantly affect the stock price. EPS has a negative and significant effect on the stock price, while PER and PBV have a positive and insignificant effect on the stock price. Keywords: Return on Equity (ROE), Earning Per Share (EPS), Price Earning Ratio (PER), Price to Book Value (PBV), Debt to Equity Ratio (DER), Beta Stock and Stock Price.