THE EFFECT OF DEBT TO EQUITY RATIO (DER), NET PROFIT MARGIN (NPM), AND EARNINGS PER SHARE (EPS) ON STOCK PRICES OF MANUFACTURING COMPANIES IN THE BASIC AND CHEMICAL INDUSTRY SECTORS LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) FROM 2014 TO 2017

Abstract

The goal of this research is to determine the evolution of each variable examined between 2014 and 2017, as well as to observe the partial and simultaneous effects of DER, NPM, and EPS on the stock price of manufacturing companies in the basic and chemical industry sectors listed on the Indonesia Stock Exchange.   The methodology takes a quantitative approach, combining descriptive and verification methodologies.   Secondary data, such as DER, NPM, EPS, and stock prices, were employed.   Purposive sampling was utilized to choose samples from eight organizations over a four-year period (2014-2017), resulting in 32 data points in total.  The statistical tests used include multiple regression analysis, classical assumption testing, correlation analysis, determination coefficients, and SPSS 21 hypothesis testing. The findings show that the DER variable has a substantial negative impact on the stock price of manufacturing businesses listed on the Indonesia Stock Exchange (IDX) in the basic and chemical industries, while NPM and EPS have a considerable positive impact.  When combined, these elements have a large favorable influence.