CAPITAL STRUCTURE AND FINANCIAL RATIOS IMPACT ON THE STOCK PRICE IN TRADE, SERVICE, AND INVESTMENT SECTOR OF INDONESIA’S PUBLIC COMPANIES

Stocks are the most common and actively traded securities in financial markets. The use of accounting data and financial ratios to explain changes in stock prices is frequently referred to in the literature. Stock price might be increased if the earnings per share of shareholders are improved. This improvement can be caused by the change of capital structure which is very important to control the overall cost of capital. This research aimed to find out the relationship between capital structure and financial ratios to stock price. The population of this research is companies listed in service, trade and investment sector from Indonesia Stock Exchange (IDX) from 2015 to 2017. The sampling method in this research is purposive sampling. Total sample used in the analysis are 95 companies. The statistical methods used in this research are descriptive statistics and multiple regression analysis. The results of this study indicate that capital structure, price to earnings and net profit margin have no significant influence on stock price while market to book value and book value per share have significant effect on stock price