The Influence of Financial Ratio and Company Reputation on Company Stock Prices Financial Sector

Abstract

Profitability is one indicator appropriate for measuring performance within a company. This study aims to determine the effect of financial ratios, namely, the influence of Current Ratio, Debt to Equity Ratio, Total Assets Turnover, Net Profit Margin, Return on Equity, Price to Earnings Ratio, and Company Reputation. Specifically, the study seeks to find out which ratio has the effect on the stock price of financial sector companies listed on the Indonesia Stock Exchange from 2016 to 2020. This study uses secondary data, where the data obtained from existing sources. The results show that there are only two variables, namely Current Ratio (CR) and Return on Equity (ROE) that affect stock prices in financial sector companies which were listed on the Indonesia Stock Exchange from 2016 to 2020.

Keywords

• effect
• current ratio
• return on equity
• financial
• stock price