Analysis of factors affecting stock prices in mining sector: Evidence from Indonesia Stock Exchange
Year: 2019
Type: article
Abstract: The stock prices of mining companies are affected by several factors, such as world oil price, inflation, exchange rate, and Price to Earnings Ratio (PER), political affairs, basic metal prices, etc. The objective of this study is to analyze the effects of some factors influencing the stock prices of the mining companies including Price to Earnings Ratio (PER), world oil price, inflation, and exchange rate. Secondary data from Annual Reports of Indonesia Stock Exchange (IDX), Energy Information Administration (EIA), and Bank Indonesia are used as the sources of data analysis. 35 mining companies are selected as samples from four mining sub-sectors; namely coal, oil & gas, other metal & mineral, and rock. The results are analyzed by using panel data regression analysis model through applying EVIEWS 10. The results indicate that Price to Earnings Ratio (PER) and world oil price had positive and significant effects on stock price. Moreover, inflation has negative and significant effect on the stock price while exchange rate has no significant effect on stock price.
Source: Management Science Letters
Authors: Zakia Maulida Antono, Adam Amril Jaharadak, Abdul Ali Khatibi
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W2947694203