Abstract :
The Effect of Return On Equity and Net Profit Margin on Stock Prices
in Mining Companies on the Indonesia Stock Exchange for the 2014-2018
Period
This study aims to examine the relationship between return on equity and net
profit margin on stock prices. The population in this study are mining companies
listed on the Indonesia Stock Exchange for the period 2014-2018. The sampling
technique in this study uses purposive sampling technique which produces a total
sample. used in this study amounted to 35 mining companies with a total of 175
observations. The data analysis method used is multiple regression analysis using
spss. The test results show that partially Return On Equity and Net Profit Margin
have no effect on stock prices and simultaneously Return On Equity and Net
Profit Margin have an effect on stock prices. The R value is 0.494 or 49.4%, this
indicates that 49.4% of the share price can be explained by independent
variables. While the remaining 50.6 is explained by other variables not included
in this regression model.
Keywords: return on equity, net profit margin, stock price, annual report,
mining company.