Determinants of Indonesian Share Price: Do Capital Structure, Sales Growth, and Profitability Matter?

International Journal of Economics and Management Studies
© 2020 by SSRG - IJEMS Journal
Volume 7 Issue 1
Year of Publication : 2020
Authors : Nicodemus Simu , Anneke Margaret Pangaribuan
How to Cite?

Nicodemus Simu , Anneke Margaret Pangaribuan, "Determinants of Indonesian Share Price: Do Capital Structure, Sales Growth, and Profitability Matter?," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 1, pp. 172-179, 2020. Crossref,


This research aims at discovering the direct and indirect effects of capital structure and sales growth on share price, with profitability as the mediating variable. This research studied 26 companies listed in the LQ45 index from 2016–2017. They were selected by using the purposive sampling method. Fifty-two observation data were analyzed using path analysis. The hypothesis testing on the first substructure equation results in the conclusion that both capital structure and sales growth have no significant effects on profitability. On the second substructure equation, capital structure and sales growth also have no significant effects on the share price. However, profitability has significant positive effects on the share price. By using the Sobel test, the mediating effects of profitability on the effects of capital structure and sales growth on share price could not be confirmed.


capital structure,sales growth,profitability, share price


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