The Influence of Internal and External Factors on the Stock Price of Property & Real Estate Companies
1Herlina Rasjid, 2Hais Dama, 3Almain Kamba
1,2,3Gorontalo State University
https://doi.org/10.47191/jefms/v7-i7-87ABSTRACT:
This study aims to examine the influence of internal factors and external factors on stock prices. Internal factors are measured by return on assets (ROA), earnings per share (EPS), debt to equity ratio (DER) and external factors are measured by inflation and interest rates, while the share price used is the closing price. This research uses 15 samples of property & real estate sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 period. The sampling method used in this research is a purposive sampling technique and the type of data used is secondary data. The data analysis method used is the SEM Partial Least Square (PLS) approach, using PLS 3.3.9 software. The research results show that internal factors have a positive and significant effect on stock prices. Meanwhile, external factors have no effect on share prices. Testing of each indicator of DER, inflation and interest rates has no influence on stock prices; Meanwhile, ROA and EPS have a positive and significant influence on share prices in property & real estate sub-sector companies for the 2018-2022 period.
KEYWORDS:
Stock Price, Internal Factors, and External Factor.
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