Fundamental Determinants of Stock Prices: Evidence from Manufacturing Firms Listed on the Indonesia Stock Exchange

Authors

  • Susan Grace Veranita Nainggolan Sekolah Tinggi Ilmu Ekonomi Eka Prasetya, Medan, Indonesia
  • Amirul Afif Muhamat Universiti Teknologi MARA Shah Alam, Shah Alam, Malaysia
  • Desma Erica Maryati Sekolah Tinggi Ilmu Ekonomi Eka Prasetya, Medan, Indonesia
  • Linda Wahyu Marpaung Sekolah Tinggi Ilmu Ekonomi Eka Prasetya, Medan, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i4.866

Keywords:

Fundamental Factors, Stock Price, Manufacturing Firms, Panel Data, Indonesia Stock Exchange

Abstract

This study examines the effects of fundamental factors on the stock prices of manufacturing firms listed on the Indonesia Stock Exchange (IDX) during 2019–2023. The independent variables comprise profitability (Return on Assets/ROA), liquidity (Current Ratio/CR), leverage (Debt-to-Equity Ratio/DER), and earnings performance (Earnings per Share/EPS). Using secondary panel data and panel regression analysis, the study evaluates both individual and joint effects of these variables on stock prices. The results show that ROA and EPS have positive and statistically significant effects on stock prices, whereas DER has a negative and significant effect. CR does not exhibit a statistically significant effect. Collectively, the fundamental variables significantly explain variations in stock prices, underscoring the relevance of firm-level financial performance in equity valuation. This study contributes empirical evidence from an emerging-market context by clarifying the relative roles of profitability, liquidity, leverage, and earnings performance in explaining stock-price variation. The findings offer practical implications for investors and corporate managers in interpreting financial indicators and making more informed investment and financing decisions.

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Published

2026-10-31

How to Cite

Nainggolan, S. G. V., Muhamat, A. A., Maryati, D. E., & Marpaung, L. W. (2026). Fundamental Determinants of Stock Prices: Evidence from Manufacturing Firms Listed on the Indonesia Stock Exchange. Greenation International Journal of Economics and Accounting, 4(4), 1445–1451. https://doi.org/10.38035/gijea.v4i4.866

Issue

Vol. 4 No. 4 (2026): Greenation International Journal of Economics and Accounting (September - October 2026)

Section

Articles

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Copyright (c) 2026 Susan Grace Veranita Nainggolan, Amirul Afif Muhamat, Desma Erica Maryati, Linda Wahyu Marpaung

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