The Influence of Financial Performance on Stock Prices in Telecommunication and Pharmaceutical Sector Companies During the Covid-19 Pandemic

Abstract

This study aims to determine the magnitude of the influence of financial performance, which includes Net Profit Margin (NPM) and Earning Per Share (EPS) on stock prices of telecommunications and pharmaceutical sector companies listed on the Indonesia Stock Exchange during the pandemic covid19. The population and samples used were 30 samples consisting of the number of financial statements at 15 companies during the 2019-2020 period. The research method used is the explanatory method with secondary data collection, which is purposive sampling. The research process was carried out using descriptive analysis test, classical assumption test, which included normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test. After that, it was continued with multiple linear regression tests and hypothesis testing, which included partial test (t-test) and simultaneous test (F test). This study proves that NPM partially affects stock prices, while EPS partially does not affect stock prices. In addition, this study also demonstrates that NPM and EPS simultaneously affect stock prices in telecommunications and pharmaceutical sector companies during the COVID-19 pandemic.