The Impact of Fundamental Factors on Stock Price with Inflation as Mediating Variable: Evidence Indonesian Listed Manufacturing Companies

Trisanti T

Published on: 2021-12-15

Abstract

This study aims to determine the effect of financial ratio such as: current ratios (CR), earnings per share (EPS), and economic value added (EVA) on stock prices, with rate of inflation as a mediating variable. This research was conducted at manufacturing company listed on the Indonesia Stock Exchange in 2016- 2019 using the purposive sampling method as a technique sampling. A sample of 59 companies was obtained with a total of 112 data. The hypothesis testing is done using the PLS Structural Equation Model of SmartPLS. The results showed that the current ratio had no insignificant effect on stock prices but earnings per share and economic value added had a significant positive effect on stock prices and the inflation rate was able to moderate the effect of earnings per share and economic value added on stock prices.