International Business Management

Year: 2017
Volume: 11
Issue: 4
Page No. 960 - 965

Factors Determinant of Share Prices: Empirical Study on Islamic Capital Market

Authors : Sutrsino

Abstract: The purpose of financial management is to maximize the welfare of the owners, one of which is measured by the share price. This study aims to examine the factors that determine stock prices. Stock prices measured by the year-end closing price while the factors thought to influence the stock price is profitability as measured by Return on Assets (ROA), Return on Equity (ROE) and Earnings Per Share (EPS). The share price was also allegedly affected by the Dividend Per Share (DPS) and Debt to Equty Ratio (DER). This research is a case study in the Islamic capital market stocks that are listed on the list of Islamic stocks. Samples taken as many as 106 companies with a purposive sampling method with the provisions of the company that makes a profit and pay dividends. Equipment using multiple linear regression analysis with SPSS. The results showed profitability as measured by EPS and ROE significantly affect stock prices while the ROA has no effect on stock prices. Dividend per share is also positive and significant effect on stock prices while DER no significantly influence stock prices.

How to cite this article:

Sutrsino , 2017. Factors Determinant of Share Prices: Empirical Study on Islamic Capital Market. International Business Management, 11: 960-965.

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