Analysis of the Effect of Fundamental Factors on Consumer Goods Company Stock Prices on the Indonesia Stock Exchange

Oct 13, 2025 by talynt.org 84 views

Analysis of the Effect of Fundamental Factors on Consumer Goods Company Stock Prices on the Indonesia Stock Exchange

Introduction

The Indonesia Stock Exchange (IDX) is one of the largest stock exchanges in Southeast Asia, with a wide range of companies listed across various sectors. Among these sectors, the Consumer Goods sector is a significant contributor to the country's economy, with companies such as Unilever Indonesia, Indofood, and PT. Sinar Mas Agro Resources and Food. The stock prices of these companies are influenced by various fundamental factors, including sales growth, company size, earnings per share (EPS), debt to equity ratio (DER), and economic value added (EVA). This study aims to analyze the effect of these fundamental factors on the stock prices of Consumer Goods companies listed on the IDX during the period 2011-2013.

Literature Review

Previous studies have shown that fundamental factors play a significant role in determining stock prices. For example, a study by [1] found that company size and leverage (DER) have a significant influence on stock prices. Another study by [2] found that sales growth and EPS have a positive impact on stock prices. However, the effect of these fundamental factors can vary between companies and is influenced by other factors such as macroeconomic conditions, market sentiment, and industrial trends.

Research Methods

This study uses secondary data in the form of financial statements from 29 Consumer Goods companies that meet the criteria and are registered on the IDX. Data was obtained from the official website of the IDX (www.idx.co.id) and Indonesian Capital Market Directory (ICMD). The analysis technique used is multiple linear regression.

Research Result

The results of this study showed that:

*** Partially **, company size variables and debt to equity ratios (DER) have a significant influence on stock prices. This shows that the greater the size of the company and the higher the der ratio, the stock price tends to increase. *** The variable sales growth, EPS, and EVA partially do not have a significant influence ** on stock prices. *** Simultaneously **, the five independent variables (sales growth, company size, EPS, DER, and EVA) ** significantly effect on stock prices **.

Deeper Analysis

These findings indicate that fundamental factors, such as company size and leverage (DER), play an important role in determining stock prices. Large company size gives a positive signal to investors about the stability and ability of the company to generate profits. Meanwhile, the high DER can show that aggressive companies in utilizing debt to finance their operations, which have the potential to increase profitability and return for investors.

However, it is essential to note that ** The effect of fundamental variables on stock prices can vary between companies ** and is influenced by other factors, such as macroeconomic conditions, market sentiment, and industrial trends.

Implications for Investors

This study provides insight for investors in understanding the factors that affect the stock price of the Consumer Goods company. Investors can utilize information about company size and DER as an indicator in determining investment choices.

Recommendation

Further research can be done by considering a longer research period, expanding the scope of samples, and including other independent variables such as operational performance and corporate governance. This will provide a more comprehensive picture of the factors that affect stock prices.

Conclusion

This study shows that ** company size and DER have a significant effect on stock prices ** Consumer Goods companies listed on the IDX. Meanwhile, ** the variable sales growth, EPS, and EVA partially do not have a significant effect **. Simultaneously, the five independent variables ** have a significant effect on stock prices **. The results of this study are expected to contribute to the development of capital markets in Indonesia.

Limitation of the Study

This study has several limitations. Firstly, the study only considers the period 2011-2013, which may not be representative of the current market conditions. Secondly, the study only includes 29 Consumer Goods companies, which may not be representative of the entire sector. Finally, the study only considers five independent variables, which may not be comprehensive.

Future Research Directions

Future research can be done by considering a longer research period, expanding the scope of samples, and including other independent variables such as operational performance and corporate governance. This will provide a more comprehensive picture of the factors that affect stock prices.

References

[1] [Author's Name], [Year], [Title of the Study], [Journal Name], [Volume], [Pages].

[2] [Author's Name], [Year], [Title of the Study], [Journal Name], [Volume], [Pages].

Appendices

Appendix A: List of Companies Included in the Study

Appendix B: Financial Statements of the Companies Included in the Study

Appendix C: Results of the Multiple Linear Regression Analysis

Appendix D: Discussion of the Results

Appendix E: Conclusion and Recommendations

Keywords

Fundamental factors
Stock prices
Consumer Goods companies
Indonesia Stock Exchange
Multiple linear regression
Company size
Debt to equity ratio
Economic value added
Sales growth
Earnings per share

Abstract

This study aims to analyze the effect of fundamental factors on the stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange (IDX) during the period 2011-2013. The study uses secondary data in the form of financial statements from 29 Consumer Goods companies that meet the criteria and are registered on the IDX. The analysis technique used is multiple linear regression. The results of this study showed that company size and debt to equity ratios (DER) have a significant influence on stock prices. Meanwhile, the variable sales growth, EPS, and EVA partially do not have a significant influence on stock prices. Simultaneously, the five independent variables have a significant effect on stock prices. The results of this study are expected to contribute to the development of capital markets in Indonesia.
Frequently Asked Questions (FAQs) about the Effect of Fundamental Factors on Stock Prices of Consumer Goods Companies Listed on the Indonesia Stock Exchange

Q: What are the fundamental factors that affect stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange?

A: The fundamental factors that affect stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange include sales growth, company size, earnings per share (EPS), debt to equity ratio (DER), and economic value added (EVA).

Q: What is the significance of company size in determining stock prices?

A: Company size is a significant factor in determining stock prices. Large company size gives a positive signal to investors about the stability and ability of the company to generate profits.

Q: What is the role of debt to equity ratio (DER) in determining stock prices?

A: The debt to equity ratio (DER) is a measure of a company's financial leverage. A high DER can show that aggressive companies in utilizing debt to finance their operations, which have the potential to increase profitability and return for investors.

Q: What is the impact of sales growth on stock prices?

A: Sales growth is a key driver of stock prices. However, the study found that sales growth does not have a significant influence on stock prices.

Q: What is the impact of earnings per share (EPS) on stock prices?

A: Earnings per share (EPS) is a measure of a company's profitability. However, the study found that EPS does not have a significant influence on stock prices.

Q: What is the impact of economic value added (EVA) on stock prices?

A: Economic value added (EVA) is a measure of a company's economic performance. However, the study found that EVA does not have a significant influence on stock prices.

Q: What are the implications of this study for investors?

A: This study provides insight for investors in understanding the factors that affect the stock price of the Consumer Goods company. Investors can utilize information about company size and DER as an indicator in determining investment choices.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the study only considers the period 2011-2013, which may not be representative of the current market conditions. Secondly, the study only includes 29 Consumer Goods companies, which may not be representative of the entire sector. Finally, the study only considers five independent variables, which may not be comprehensive.

Q: What are the future research directions?

A: Future research can be done by considering a longer research period, expanding the scope of samples, and including other independent variables such as operational performance and corporate governance. This will provide a more comprehensive picture of the factors that affect stock prices.

Q: What are the contributions of this study to the development of capital markets in Indonesia?

A: The results of this study are expected to contribute to the development of capital markets in Indonesia by providing insight into the factors that affect stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange.

Q: What are the practical implications of this study for investors and policymakers?

A: The practical implications of this study for investors and policymakers are that they should consider the company size and DER as indicators in determining investment choices and policy decisions.

Q: What are the future implications of this study?

A: The future implications of this study are that it can be used as a reference for future research on the factors that affect stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange.

Q: What are the limitations of this study in terms of generalizability?

A: The limitations of this study in terms of generalizability are that it only considers the period 2011-2013 and only includes 29 Consumer Goods companies, which may not be representative of the entire sector.

Q: What are the future research directions in terms of generalizability?

Q: What are the implications of this study for the development of capital markets in Indonesia?

A: The implications of this study for the development of capital markets in Indonesia are that it can provide insight into the factors that affect stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange, which can be used to develop policies and regulations that promote the development of capital markets in Indonesia.

Q: What are the future implications of this study for the development of capital markets in Indonesia?

A: The future implications of this study for the development of capital markets in Indonesia are that it can be used as a reference for future research on the factors that affect stock prices of Consumer Goods companies listed on the Indonesia Stock Exchange, which can be used to develop policies and regulations that promote the development of capital markets in Indonesia.