Jurnal Valid

The fluctuation of stock price depends on difference of supply and demand. For the investors, information on EPS, DPS and FL is crucial in decision making. Accordingly, this study aims at identifying the partial and simultaneous  effect of EPS, DPS, and FL towards the stock price of automotive companies listed in the Stock Market of Indonesia.

It is hypothesized that EPS, DPS, and FL have both partial and simultaneous effect towards the stock price. This is an associative research that collects data through literature study and documentation. Data is analyzed using the multiple linear regression. Based on the Classic Assumption Test, which includes normality test, multicolinearity test, heteroskedasticity test and auto-correlation test, no diverging variable is found. This means that the available data meets the conditions required for the use of the multiple linear regression equation model. Out of the population, 12 automotive companies listed in the Stock Exchange of Indonesia in the period of 2005 – 2011. Hypothesis of the study is tested using the T-test and F-test on a significance level (α) of 5%.

The T-test reveals taht EPS and DPS have no significant correlation with the stock price as Tcal  is less than Ttable with a significance level greater than 0.05. Meanwhile, FL seems to have a significant correlation with the stock price as Tcal of 3.116 is greater than T_table of 2.040 with a significance level less than 0.05. Furthermore, the F-test reveals that cariables of EPS, DPS and FL have simultaneous effect towards stock price as F cal of 6.652 is greater than Ftable of 2.91 with the significance level of 0.001 which is less that 0.05. it is found that the most dominant effect for the stock price comes from the FL of 0.238144. The ability of the three variables in affecting the stock price is by 33 %; on the other hand, 67% of the stock price is affected by other factors not included in this research.

Keywords: EPS, DPS, FL, Stock Price

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