Effect of Profitability on Stock Prices of Transportation Companies in Indonesia

Abstract

The purpose of this study was to determine and analyze the effect of Gross Profit Margin on stock
prices, to determine and analyze the effect of Net Profit Margin on stock prices, to determine and
analyze the effect of Return on Asset on stock prices, to determine and analyze the effect of Return on
Equity on stock prices and to find out and analyze the effect of Cross Profit Margin, Net Profit
Margin, Return On Assets Ratio and Return On Equity on stock prices both partially and
simultaneously on Transportation Companies Listed on the Indonesia Stock Exchange for the period
2013-2017. The approach used in this study is associative approach. The population in this study are
all Transportation Companies Listed on the Indonesia Stock Exchange while samples that meet the
criteria for sampling observations carried out for five years and as many as seven Transportation
Companies Listed on the Indonesia Stock Exchange. Data collection techniques in this study used
documentation techniques. The data analysis technique in this study used the Classical Assumption
Test, Multiple Regression, Hypothesis Test (t Test and F Test), and the Determination Coefficient.
Processing data in this study using the SPSS (Statistical Package for the Social Scoring) software
version 24.00. The results of this study prove that partially there is a significant positive effect of
Gross Profit Margin on stock prices. There is a significant negative effect on Net Profit Margin on
stock prices. There is a significant positive effect of Return On Assets on stock prices. There is no
effect of Return On Equity on stock prices. Simultaneously there is a positive and significant
influence of all variables affecting the stock price of transportation companies listed on the Indonesia
Stock Exchange.