Proceedings of the International Conference on Strategic Issues of Economics, Business and, Education (ICoSIEBE 2020)

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The Effect of Profitability on Share Prices Through Capital Structure as an Intervening Variable in Indonesia’s Automotive Sectors Listed Companies

Authors
Putri Kemala Dewi Lubis, Deni Adriani
Corresponding Author
Putri Kemala Dewi Lubis
Available Online 22 February 2021.
DOI
10.2991/aebmr.k.210220.025How to use a DOI?
Keywords
Profitability, Capital Structure, Stock Price
Abstract

The purpose of this study is to determine whether there is an influence between profitability (Return On Equity) on stock prices through the capital structure (debt to equity ratio) as an intervening variable on automotive sector companies listed on the Indonesian stock exchange (BEI) 2013 - 2017 period. It uses an associative approach. Data collection techniques in this study using documentation techniques. Data analysis techniques in this research are using path analysis, classic assumption test, hypothesis test, and the coefficient of determination with a significance level of 5%. The results of this study indicate that Profitability (Return On Equity) has no significant and negative effect on the Capital Structure (Debt To Equity Ratio) of -1,624, Profitability (Return On Equity) has a significant and positive effect on the Stock price of 3,525, Capital Structure (Debt To Equity Ratio) does not have a significant and negative effect on the Share Price of -0,531, and Profitability (Return On Equity) directly affects the Stock Price of 0,535.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Strategic Issues of Economics, Business and, Education (ICoSIEBE 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
22 February 2021
ISBN
978-94-6239-339-4
ISSN
2352-5428
DOI
10.2991/aebmr.k.210220.025How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Putri Kemala Dewi Lubis
AU  - Deni Adriani
PY  - 2021
DA  - 2021/02/22
TI  - The Effect of Profitability on Share Prices Through Capital Structure as an Intervening Variable in Indonesia’s Automotive Sectors Listed Companies
BT  - Proceedings of the International Conference on Strategic Issues of Economics, Business and, Education (ICoSIEBE 2020)
PB  - Atlantis Press
SP  - 140
EP  - 144
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210220.025
DO  - 10.2991/aebmr.k.210220.025
ID  - Lubis2021
ER  -