The Impact of Accounting Fundamentals and Macroeconomic Indicators on Manufacturing Companies' Stock Prices

Abstract

The aim of this research is to ascertain if accounting fundamentals and macroeconomic indicators have an effect on stock prices. In this research, a quantitative method was used. The population of this research includes manufacturing firms listed on the Stock Exchange, with a sample size of ten companies collected through secondary data during the 2019-2020 quarter. Scale of data measurement using a ratio scale. The findings indicated that inflation and interest rate macroeconomic variables had little impact on stock values. Fundamentals of Accounting The return on equity and the price-earnings ratio both have a substantial beneficial impact on company prices

The Influence and Contribution of Macroeconomics to The Indonesian Sharia Stock Index for The Period 2011-2021

“…This leads to the conclusion that when inflation is high, investors' returns are small. According to Shih & Hoang (2021), higher inflation can lead to higher production costs and product selling prices. Higher selling prices result in lower market demand, so companies respond by reducing production, which ultimately leads to lower efficiency and profitability.…”