DETERMINANT FACTOR ON STOCK PRICE FOOD AND BEVERAGES INDUSTRY SECTOR

Abstract

Purpose -The purpose of this study is to test the effect of leverage and firm size on stock price with return on owners equity as an intervening variable and managerial experiences as moderating variables.

Design/methodology/approach- The data used in this study is secondary data in the form of company financial statements from 2016-to 2020. The population in this study is 49 companies of consumer goods, and the sample used in this study is 29 companies. The data processing method used is warp PLS.

Findings- The results of the study state that 1) Leverage has a significant effect on ROE; 2) Company size has a significant effect on ROE; 3) Leverage has no significant effect on stock prices; 4) Firms size has a significant effect on stock prices; 5) ROE has a significant effect on stock prices; 6) ROE is mediated effect Leverage on Stock Prices; 7) ROE is mediated effect Firms Size on Stock Prices; 8) Managerial experience is moderating effect Leverage on ROE; 9) Managerial experience is moderating effect Firms Size on ROE.

Practical implications- This research has implications for companies where it is important to consider experience for investment managers in making decisions

Originality/value- This study uses a consumer good company as the object of research, where this research is expected to assist the company in making a decision related to the experience of a manager that can affect stock prices.

Keywords- Leverage, Firms Size, Return On Owners Equity, Stock Price, Managerial Experiences.

Paper type — Case study