THE INFLUENCE OF INTERNAL AND EXTERNAL FACTORS ON HEALTHCARE STOCK PRICES IN IDX

Abstract

This research aims to determine and analyze the influence of the current ratio, net profit margin, earnings per share, inflation, interest rates and debt to equity ratio on stock prices. The population of this research is 28 health sector companies listed on the Indonesia Stock Exchange for the 2018 - 2022 period, and the sample for this research is 10 companies determined using a purposive sampling technique. The analysis tool uses regression on panel data and obtains the best random effect model. The results of the t test current ratio, earnings per share, inflation, debt to equity ratio have a significant positive effect on stock prices, while interest rates have a significant negative effect on stock prices, while net profit margin has no effect on stock prices. Investors should still consider the net profit margin in determining investment decisions, especially the current ratio, earnings per share, inflation, interest rates and debt to equity ratio because they affect share prices. The limitation of this research is that it cannot prove the effect of net profit margin on stock prices. It is hoped that future researchers will use other independent variables, such as price book value, return on assets, exchange rate, money supply and others as well as use other sectors on the Indonesian Stock Exchange, apart from the health sector and with a longer observation year.