Factors Influencing Stock Prices on The Indonesian Sharia Stock Index (ISSI)
DOI:
https://doi.org/10.47065/arbitrase.v6i2.2614Keywords:
Return on Asset; Price to Earning Ratio; ISSIAbstract
This study investigates the relationship between Return on Assets (ROA) and Price-Earnings Ratio (PER), as well as ROA and Dividend Policy, in food and beverage companies listed on the Indonesian Sharia Stock Index (ISSI) from 2019 to 2023. Using a quantitative approach, secondary data from financial reports were analyzed. The findings reveal a significant positive relationship between ROA and PER, with a coefficient of 0.013211 (t-statistic: 3.134266, p-value: 0.0435), indicating that efficient asset management enhances company valuation. Additionally, ROA significantly impacts Dividend Policy, with a coefficient of 0.089739 (t-statistic: 2.851990, p-value: 0.0363), suggesting that companies with higher ROA are more likely to implement a stronger dividend policy. However, the Sobel test results show no mediation effect, with a statistic of -0.31512029 (p-value: 0.75267032), indicating that dividend policy does not mediate the relationship between ROA and PER. These results suggest that investors primarily focus on financial fundamentals such as ROA when assessing company value, while dividend policy plays a secondary role in influencing stock valuation.
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