Analyzing Accounting Ratios as Determinants of the LQ45 Stock Prices Movements in Indonesia Stock Exchange During the Period of 2002-2006

Authors

  • Agus Arianto Toly Faculty of Economics Petra Christian University

:

https://doi.org/10.9744/jak.11.2.pp.%2076-87

Keywords:

book value per share, current ratio, dividend payout ratio, earnings per share (EPS), fundamental analysis, LQ-45, return on assets (ROA), stock dividends, and technical analysis.

Abstract

The lack of studies regarding the determinants of stock price movement in the Indonesia Stock Exchange (ISX), which is an emerging stock exchange in the South East Asia region, and the pursue of generalization became the reasons of why this study. Previous research (Gupta, Chevalier, & Sayekt, 2000; Subiyantoro & Andreani, 2003), mostly focus on the external factors of the firms, instead of the internal factors. This study uses the accounting ratios as the determinants of the prices of stocks’ classified as the LQ45 in the ISX during 2002-2006. The panel-data regression model is used to test whether all of the independent variables involved in the equation could simultaneously explain the behavior of the dependent one. The developed model would be analyzed by the utilization of econometrics package, namely GRETL 1.7.4. After conducting some statistical treatments on the developed model, this study reveals that the shareholders’ ratios consisted of book value per share, dividend payout ratio, EPS, and ROA are the accounting ratios, which determine the LQ45’s stock price movement in the ISX during the period of 2002-2006.

Downloads

Published

2010-05-04

How to Cite

Toly, A. A. (2010). Analyzing Accounting Ratios as Determinants of the LQ45 Stock Prices Movements in Indonesia Stock Exchange During the Period of 2002-2006. Jurnal Akuntansi Dan Keuangan, 11(2), pp. 76-87. https://doi.org/10.9744/jak.11.2.pp. 76-87

Issue

Vol. 11 No. 2 (2009): NOVEMBER 2009

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain the copyright and publishing right, and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) followingthe publication of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).<a href="http://creativecommons.org/lice