IJRR

International Journal of Research and Review

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Research Paper

Year: 2021 | Month: August | Volume: 8 | Issue: 8 | Pages: 244-253

DOI: https://doi.org/10.52403/ijrr.20210834

The Effect of Free Cash Flow, Debt to Equity Ratio, Working Capital Turnover and Earnings Per Share on Stock Prices with Stock Beta as Moderating Variable in Construction Sub-Sector Companies Listed on the IDX for the 2013-2019 Period

Nurul Ramadhani Pauzi Harahap1, Idhar Yahya1, Abdillah Arif Nasution1

1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia

Corresponding Author: Nurul Ramadhani Pauzi Harahap

ABSTRACT

The purpose of this study aims to discover the effect of free cash flow, debt to equity ratio working capital turnover, and earning per share on stock price with stock beta as moderating variables.
This research was conducted on Construction Sub-Sector Companies listed on the Indonesia Stock Exchange for 2013-2019.
The technique in this study uses a purposive sampling technique. The sampling technique shows that the research sample is ten companies with seven years of research, so the number of observations in this study is 70. The data analysis method used in this study is Panel Data Regression Analysis which was carried out with the help of EViews software.
The results showed that free cash flow, working capital turnover did not significantly affect stock prices and earnings per share, and the debt to equity ratio had a significant effect on stock prices. The stock beta variable can moderate the effect of free cash flow, debt to equity ratio, working capital turnover, and earnings per share on stock prices.

Keywords: Free Cash Flow, Working Capital Turnover, Earnings Per Share and Debt to Equity Ratio, Stock Price and Stock Beta.

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