The Effect of Risk, PBV, Fed Rate, and Oil Prices on Stock Prices Moderated by Firm Size in Mining Companies Listed on the Indonesia Stock Exchange

Ayke Nuraliati; Nurzeina Mayasari; Ahmad Johan

doi:10.37034/jems.v9i1.576

Authors

Ayke Nuraliati Universitas Langlang Buana
Nurzeina Mayasari Universitas Langlang Buana
Ahmad Johan Universitas Langlang Buana

DOI:

https://doi.org/10.37034/jems.v9i1.576

Keywords:

Risk, Price Book Value, Fed Rate, Oil Prices, Stock Prices

Abstract

This study aims to analyze the effect of risk, Price Book Value (PBV), Fed Rate, and oil prices on stock prices, with firm size as a moderating variable, and inflation, liquidity, and solvency as control variables. This study uses a panel data regression approach with the help of EViews 12 software. Research data were obtained from 30 mining sector companies listed on the Indonesia Stock Exchange during the period 2014–2022. The novelty of this study lies in the use of inflation, liquidity, and solvency as control variables in examining the determinants of stock prices. The results show that risk, PBV, Fed Rate, and oil prices influence stock prices, considering the moderating role of firm size. This study confirms that stock price movements are influenced by internal and external factors of the company. The findings provide empirical evidence regarding the importance of financial indicators and macroeconomic conditions in explaining stock price fluctuations. This research contributes to financial literature by providing additional evidence about the relationship between company characteristics, economic conditions, and stock performance in the mining sector. Therefore, investors and researchers can consider various financial and economic factors when analyzing stock market performance and investment decisions. In addition, this study highlights the importance of considering both company-specific characteristics and macroeconomic conditions when evaluating stock price movements in emerging markets. The findings may serve as a reference for future studies examining the interaction between financial indicators, external economic factors, and firm characteristics in determining stock market performance.

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