The Effect of Fundamental Factors, Systematic Risk and Good Corporate Governance to the Stock Price in the Consumer Good Companies Listed On Indonesian Stock Exchange 2008-2018

Abstract

This research is focused on the financial fundamental analysis factors, the systematic risk and GCG to the stock price of the consumer goods company which is registered in Indonesia Stock Exchange.

The variables that used are return on assets (ROA), return on equity (ROE), debt to equity ratio (DER), price earning ratio (PER), price book value (PBV), the systematic risk, board of commisioners, audit comitte, managerial ownership and institutional ownership as the independent variables and the company stock price  as the dependent variable. This research is using Structural Equation Model (SEM) based on Partial Least Square (PLS) version 3.0 to see the variable indicator which is give more influence and big contribution of each variable in affected the stock price.

The testing result shows thatROA, ROE, PER and the systematic risk have the insignificant influence to the stock price while DER and PBV have the significant influence to the stock price. The test result is also show that board of commisioners, audit comitte and institutional ownership have the significant influence to the stock price while managerial ownership has insignificant influence to the stock price in the consumer goods company that registered at the Indonesia Stock Exchange.

Keywords: Fundamental Factors, Systematic Risk, Good Corporate Governance and Stock Price.

Keywords: return on assets (ROA), Structural Equation Model (SEM), Full adder, debt to equity ratio (DER).