The Effect Of Net Profit On Share Price In Construction Sector Companies Listed In Indonesia Stock Exchange (IDX)

Abstract

Abstract. This research aimed: to determine the effect of Net Profit on Stock Price in Construction Sector Companies listed on the Indonesia Stock Exchange. The variables in this study are net profit as a free variable, and stock price as a bound variable. The population in this study is construction sector companies listed on the Indonesia Stock Exchange in the 2018-2021 period, totaling 21 companies. Sampling was carried out using purposive sampling techniques, which are sampling techniques with certain considerations and criteria with a sample of 8 companies. The data collection technique used is documentation. Data analysis techniques use descriptive analysis, simple linear regression analysis, t-tests, and coefficients of determination. Based on the results of the study that: (1) the results of the descriptive analysis show that net profit has a maximum value of 1,501,973, a minimum value of 173, an average value of 211,586.19, and a standard deviation value of 315,420.001, in addition to the stock price has a maximum value of 1,985, a minimum value of 190, an average value of 808.12, and a standard deviation value of 555.666, (2) the results of simple linear regression analysis obtained the equation Y = 646.464 + 0.001X, (3) the t-test results obtained the result is a sig value of 0.013 < 0.05, this means that the net profit variable has a significant effect on stock prices in construction sector companies listed on the Indonesia Stock Exchange (IDX), (4) the coefficient of determination is 0.188 or 18.8 percent. This means that net profit has a contribution or influence on the stock price of 18.8 percent while the remaining 81.2 percent is influenced by other factors.

Key words: Net Profit, Stock Price.