Effect of Macroeconomic and Profit Growth on the Stock Prices of Pharmaceutical Companies in Indonesia

Abstract

The purpose of investing in the investor side is to get a bigger share profit in the future by investing capital in the present. Investors will invest by investing capital funds in the capital market and see which companies will benefit them in the future. Investors have several things to consider before investing in a company. The stock price can be influenced by several factors such as macroeconomic factors and profit growth. Macroeconomic factors that can influence stock prices include inflation and interest rates. The purpose of this study is to investigate the relationship between the stock prices of pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) and inflation, interest rates, and profit growth. Purposive sampling was the method of sampling that was employed in this investigation. Eight companies were included in the sample size that was obtained based on the predetermined criteria for sample selection. Multiple linear regression analysis, along with descriptive statistical analysis techniques, autocorrelation, heteroscedasticity, multicollinearity, normality, coefficient of determination, F, and t tests, are the analysis models used in this study. The findings demonstrated that there was no apparent effect of inflation, interest rates, or profit growth on stock prices, either partially or simultaneously.