Determinants of Coal Company Stock Prices: The Value Relevance of Earnings Per Share Accounting Information and Global Coal Proces Using The Fixed Effect Model Approach

Adzqi Naura Widiawati; Januar Eko Prasetio; Sri Suryaningsum

doi:10.32535/jicp.v9i4.5163

Determinants of Coal Company Stock Prices: The Value Relevance of Earnings Per Share Accounting Information and Global Coal Proces Using The Fixed Effect Model Approach

Adzqi Naura Widiawati, Januar Eko Prasetio, Sri Suryaningsum

Abstract

Stock price is an important indicator for assessing how the market responds to information about a company's condition and prospects. From an accounting perspective, information presented in financial statements plays an important role in helping investors evaluate company performance and make investment decisions. One accounting information item widely used in company valuation is Earnings Per Share (EPS), as this indicator shows the amount of profit available to each ordinary share. This study aims to analyze the effect of EPS as accounting information and global coal prices as an external factor on the stock prices of coal companies. The population consists of 5 coal companies over the 2019–2025 period. The study uses panel data and compares the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). Based on the estimation results, the FEM is more appropriate than the CEM. EPS and Coal Price show negative relationships with stock prices during the observation period. These results indicate that coal company stock-price responses are not determined solely by increases in earnings per share or changes in coal prices, but also by investors' perceptions of earnings quality and sustainability, future expectations, industry conditions, and market risk.

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DOI: https://doi.org/10.32535/jicp.v9i4.5163

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