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The Effect of Profitability Ratio, Capital Structure, and Trade Volume to Stock Price in Mining Industry Period 2013-2016


Helin Garlinia
Abstract

This study aims to determine the effect of profitability ratios, capital structure, and trading volume on stock prices of companies classified into the mining sector industry listed on the Indonesia Stock Exchange period 2013-2016. The independent variable used in this research is profitability ratio measured by Return on Assets (ROA), capital structure as measured by Debt to Equity Ratio (DER), and trading volume, while the dependent variable is stock price. The sample of this research consists of 30 companies belonging to the mining industry listed in Indonesia Stock Exchange period 2013-2016 selected based on certain criteria by using purposive sampling method. Data analysis method used in this research is multiple linear regression analysis by first doing classical assumption test, then continued with analysis of coefficient of determination and hypothesis testing. The result of F test shows that profitability ratios, capital structure, and trade volume together have a significant effect on stock price. Partially shows that only profitability ratios that have a significant positive effect on stock prices. While the capital structure and trading volume does not affect the stock price. Profitability ratio, capital structure and trading volume simultaneously contributed 18.89% to stock price and the rest of 81.1% influenced by other factors.

Volume 11 | 03-Special Issue

Pages: 58-64