FINANCIAL PERFORMANCE ANALYSIS AND ITS CORRELATION WITH STOCK PRICE- A CASE STUDY OF INDONESIA LQ 45 COAL MINING COMPANIES

About Us

Ipmi Repository is an online archive service which is managed by IPMI Library - Learning Resource Center. Established for collecting, managing, saving, preserving and disseminating digital copies of intellectual output of IPMI International Business School such as academic journal, books, theses, Group Field Project, Community Involvement Project, Case Study, conference paper, and other types of research publication. The main objective of this repository is to provide long-term, public, open access and easily retrieve to the digital collection to support teaching-learning process.

"Knowledge without observation is nil"

Nafisah, Umi and Daryanto, Wiwiek Mardawiyah (2020) FINANCIAL PERFORMANCE ANALYSIS AND ITS CORRELATION WITH STOCK PRICE- A CASE STUDY OF INDONESIA LQ 45 COAL MINING COMPANIES. South East Asia Journal of Contemporary Business, Economics and Law, 22 (1). pp. 30-48. ISSN 2289-1560

[img] Text
FINANCIAL PERFORMANCE ANALYSIS AND ITS CORRELATION WITH STOCK PRICE- A CASE STUDY OF INDONESIA LQ 45 COAL MINING COMPANIES.pdf
Restricted to Registered users only
Download (797kB)

Abstract

Economic crises in Europe, China and India gave impact to slow economic growth and impacted on the decline in coal prices. The impact caused by the reduction in coal consumption in China is the abundant stock of coal throughout the world, which has caused coal prices to decline starting from 2013. Fluctuating trends in coal prices have a direct impact on coal businesses. This can be reflected in the financial performance. The stock price is important and must be considered by investors. This study aims to analyze financial performances and its correlation with stock price of coal mining companies listed in LQ 45 of February within period 2014 – 2018 under the situation of volatile coal price. The method used in this study is calculation of financial ratios to analyze financial performance such as liquidity, profitability, solvability and activity. This study also determines the correlation between relationships financial ratios and stock prices. The correlation analysis of this study using PMCC method. Based on the results of the calculation of financial ratio analysis is all companies is in liquid condition and PT Adaro Energy is the most liquid company, all companies is profitable and PT Bukit Asam has the best profitability performance, all companies are solvable and PT ITM has a lower risk than other companies, and PT ITM is the most efficient in utilizing its resources. This study confirms that net profit margin of a company has the strongest correlation with stock price with average coefficient correlation was +0.836, while equity to total asset has the weakest with average coefficient correlation was +0.391. This study has added the knowledge in financial literature. It gives a strong insight for managers in coal mining industries about financial performance. The findings are important for investor to make decision in stock market transaction.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Dr. Wiwiek Mardawiyah Daryanto
Date Deposited: 17 Nov 2020 09:06
Last Modified: 21 Dec 2021 06:58
URI: http://repository.ipmi.ac.id/id/eprint/949

Actions (login required)

View Item View Item