Year: 2026
Type: article
Abstract: This study examines the effects of firm-level financial fundamentals and macroeconomic conditions on stock prices in the pharmaceutical sector in Indonesia, with COVID-19 included as an independent variable to assess its direct association with stock price movements. This study employs annual panel data from pharmaceutical companies listed on the Indonesia Stock Exchange over the 2018–2026 period. A Random Effects Model (REM) is used to estimate the effects of Current Ratio (CR), Dividend per Share (DPS), interest rates, inflation, exchange rates, and a COVID-19 dummy variable on stock prices. Secondary data are obtained from company financial statements, Bank Indonesia, and Statistics Indonesia (BPS). Hypotheses are tested using one-tailed tests based on the hypothesized directions of the relationships. The results show that inflation and Dividend per Share have positive and statistically significant associations with pharmaceutical stock prices, while exchange rates have a negative and statistically significant association at the 5% significance level. The Current Ratio has a positive association, whereas the COVID-19 indicator has a negative association; both are statistically significant at the 10% level under the one-tailed tests but not at the 5% level. Interest rates do not have a statistically significant association with stock prices. These findings highlight the relevance of macroeconomic conditions and firm-level financial characteristics in explaining pharmaceutical stock price movements, although the explanatory power of the model is relatively limited.
Source: Media Ekonomi
DOI: 10.25105/v33i2.27721
Institution: Universitas Trisakti
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7225565285