Evaluation of the Influence of Sales Growth, Business Risk, and Capital Structure on Stock Prices
Year: 2024
Type: article
Abstract: Stock prices are an important indicator in assessing a company's performance and attracting investor attention. Sales growth, business risk, and capital structure are factors that can influence a company's stock prices. This study aims to evaluate the extent to which sales growth, business risk, and capital structure affect stock prices. The specific objectives are to determine the relationship between these variables and to provide strategic recommendations for company management to enhance stock performance. This research uses a quantitative approach with multiple regression analysis methods. The data used are secondary data obtained from the financial statements of companies listed on the Bursa Efek Indonesia (BEI). The research sample was selected using purposive sampling technique, with a total of 50 companies. Classical assumption tests were conducted to ensure the validity of the regression model. The results show that sales growth has a positive and significant effect on stock prices. Business risk is found to have a negative but not significant effect on stock prices. Capital structure also shows a negative and significant effect on stock prices. These findings indicate that management needs to focus on sales growth strategies and capital structure management to maximize stock prices
Author: Mukri Eri
Institution: Universitas Islam Negeri Raden Intan Lampung
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4409876077