THE EFFECTS OF FINANCIAL RATIOS ON SHARE PRICES (AN EMPIRICAL STUDY OF AGRICULTURAL SECTOR COMPANIES PLANTATION SUBSECTOR LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) FOR THE 2013-2019 PERIOD)

Abstract

This study aims to determine whether Return on Assets (ROA), Debt to Equity Ratio (DER), and
Price Earnings Ratio (PER) affect the share prices in agricultural sector companies - plantation
subsector listed on the Indonesia Stock Exchange (IDX) for the 2013-2019 period, both partially and
simultaneously. This research uses a quantitative method with a secondary data analysis approach.
The data used in this study are documentation data or secondary data. Data collection method used is
document collection method. The population in this study is agricultural sector companies’
plantation subsector listed on the Indonesia Stock Exchange for the 2013-2019 period, amounting to
19 companies. The selected research sample includes 11 agricultural sector companies plantation
subsector. The research sample was selected using one of the sampling techniques, namely
nonprobability sampling with purposive sampling method. The independent variables in this study
consist of ROA, DER, and PER. In addition, the dependent variable referred to in this study is the
share price. The method used for data analysis in this study is multiple linear regression analysis. The
results of this study indicate that partially, ROA and DER affect the share prices, while PER does not
affect the share prices. Simultaneously, ROA, DER, and PER affect the share prices.