Total Asset Turnover and Debt to Equity Ratio on Pharmaceutical Company Stock Prices: An Exploration of the Moderator Roles of Operating Efficiency
Keywords:
Asset turnover, Equity ratio, Stock price, Operating efficiency
Abstract
High or low stock prices are a representation of the financial manager's performance in managing the company's internal factors. This research aims to investigate total asset turnover (TATO) and debt to equity ratio (DER) on stock prices with strong operational efficiency as moderation, as many as seven pharmaceutical sector issuers listed on the Indonesia Stock Exchange were used as the population by utilizing financial reports for 2015 - 2022. Total sampling technique was used to obtain 56 units of analytical data. Hypothesis testing was carried out using moderating regression analysis utilizing Eviews-13. The results of hypothesis testing show that total asset turnover (TATO) and debt to equity ratio (DER) have a positive and significant effect on stock prices. The role of moderation operational efficiency in testing total asset turnover is proven to be a moderating variable, whereas the debt to equity ratio test on stock prices does not work.
References
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23. Sulistiawati, D., & Sjahruddin, H. (2020). The influence of earnings per share and dividends per share on the share prices of property, real estate and construction sector companies listed on the IDX. Journal of Administration and Management, 10(1), 77-84.
24. Wulandari, O. (2022).The Influence of Return On Equity, Current Ratio, and Debt to Equity Ratio on Stock Prices in Metal and Mineral Mining Sub-Sector Companies Listed on the Indonesia Stock Exchange 2015-2020. Pakuan University Faculty of Economics and Business.
25. Wulandari, S., Pakpahan, E., Toni, N., & Simorangkir, E. N. (2022). The Influence of Debt to Equity Ratio, Working Capital Turnover and Accounts Receivable Turnover on Stock Prices in Manufacturing Companies in the Food and Beverage Subsector on the Indonesia Stock Exchange in 2018-2021. International Journal of Social Science Research and Review, 5(11), 14–27. https://doi.org/10.47814/ijssrr.v6i10.609
2. Alqudah, I. H. A., Carballo-Penela, A., & Ruzo-Sanmartín, E. (2022). High-performance human resource management practices and readiness for change: An integrative model including affective commitment, employees’ performance, and the moderating role of hierarchy culture. European Research on Management and Business Economics, 28(1), 100177. https://doi.org/10.1016/j.iedeen.2021.100177
3. Anjayagni, P., & Lestari P, D. (2020).The Influence of CR (Current Ratio), DER (Debt to Equity Ratio), and TATO (Total Assets Turnover) on Stock Prices (Study of Pharmaceutical Sub-Sector Companies Listed on the Indonesian Stock Exchange for the 2015-2018 Period) /79/bisnis/2020. Faculty of Social and Political Science.
4. Anggraeni, I. R., Sjahruddin, H., & Astuti, N. P. (2020). The Effect of Profitability and Liquidity on Stock Prices in Food and Beverage Companies. Indonesian Journal of Management Science and Business, 10(1), 1-9.
5. Brigham. (2014). Basics of Financial Management. Book 1. Edition 11. Salemba Four.
6. Choirudin, C., & Taman, A. (2018). Pengaruh Current Ratio, Return On Equity, Debt To Equity Ratio Terhadap Return Saham Pada Perusahaan Food And Beverages Periode 2013-2016. Profita Journal: Study of Accounting Science, 8(6).
7. Darmadji, F. (2012).Capital Markets in Indonesia, Edition 3. Salemba Four.
8. Desy Istiyowati, & Ika Swasti Putri. (2022). The Influence of Total Asset Turnover (TATO), Earning Per Share (EPS), Debt To Assets Ratio (DAR) on Stock Prices in the Pharmaceutical Industry. AKUA: Journal of Accounting and Finance, 1(2), 210–215. https://doi.org/10.54259/akua.v1i2.774
9. Gafur, A. (2022).Difference Test Analysis of Financial Performance of Manufacturing Companies Before and During the Pandemic (Study of Non-Consumer Goods Manufacturing Companies 2018-2021). Hasanuddin University.
10. Hajati, D. I., A, D. W., & Wahyuni, H. N. (2018). The Influence of Individual Characteristics, Job Characteristics and Organizational Characteristics on Employee Performance (Study at Kotabaru Polytechnic).Journal of Business and Development, 7(1), 1–10.
11. Hidayat, S. (2020). The Influence of Total Asset Turnover (TATO) and Debt to Equity Ratio (DER) on Stock Prices with Profitability as an Intervening Variable (Survey on Food and Beverage Sub-sector Manufacturing Companies Listed on the Indonesian Stock Exchange in 2012.Eqien-Journal of Economics and Business, 1(7), 102–110.
12. Jufrizen, J., & Nasution, M. F. (2016). The Influence of Return On Assets, Total Assets Turnover, and Inventory Turnover on Debt To Assets To Ratio in Services Companies in the Wholesale Trade Sub-sector of Production Goods Listed on the Indonesian Stock Exchange.Journal of Accounting & Business Research, 1(16), 45–70.
13. Karyoto. (2017).Financial Report Analysis. UB press.
14. Maharani, S. (2021).The Effect Of Current Ratio, Debt To Equity Ratio And Return On Asset On Dividend Payout Ratio In Idx High Dividend Index Companies 20 PERIOD 2017-2019.
15. Muritala. (2018). An Empirical Analysis of Capital Structure on Firms’ Performance in Nigeria. International Journal of Advances in Management and Economics.
16. Nelwan, R., Sjahruddin, H., & Sohilauw, M. I. (2020). The Effect of Profitability and Solvency on Manufacturing Company Stock Prices. Indonesian Journal of Management Science and Busines, 10(1), 10-17.
17. Rambe, F. M., Gunawan, A., Julita, J., Roni, P., & Gultom, K. D. (2017). Introduction to Financial Management. (First, Ed.) (First). Media Library Image.
18. Ramdayanti, R., Mulyadi Soepardi, E., & Herdiyana. (2019). The Effect of Quick Ratio (QR), Total Assets Turnover (TATO), Return on Equity (ROE), Earning Per Share (EPS) and Inflation on Share Prices in the Pharmaceutical Sub-Sector Listed on the Indonesian Stock Exchange in 2013-2017.Online Journal of Management Students, 4(2), 1–15.
19. Rivai. (2013).Human Resource Management for Companies From Theory to Practice. Rajagrafindo persada.
20. Safitri, K., Mertha, I. M., Gusti, N., Wirawati, P., & Dewi, A. (2020).The Impact Of Debt To Equity Ratio , Price Earning Ratio , Earning Per Share To The Stock Price On Banking Sectors Listed In Info Bank 15 Index 2014- 2018. 5, 49–56.
21. Sitanggang, J. P. (2014).Corporate Financial Management Ed.2. Media Discourse Partners.
22. Suwardika & Mustanda. (2020). The Influence of Company Size, Sales Growth and Profitability on Company Value.Management Student Research Journal, 6(1), 1248–1277. https://doi.org/10.21067/jrmm.v6i1.4467
23. Sulistiawati, D., & Sjahruddin, H. (2020). The influence of earnings per share and dividends per share on the share prices of property, real estate and construction sector companies listed on the IDX. Journal of Administration and Management, 10(1), 77-84.
24. Wulandari, O. (2022).The Influence of Return On Equity, Current Ratio, and Debt to Equity Ratio on Stock Prices in Metal and Mineral Mining Sub-Sector Companies Listed on the Indonesia Stock Exchange 2015-2020. Pakuan University Faculty of Economics and Business.
25. Wulandari, S., Pakpahan, E., Toni, N., & Simorangkir, E. N. (2022). The Influence of Debt to Equity Ratio, Working Capital Turnover and Accounts Receivable Turnover on Stock Prices in Manufacturing Companies in the Food and Beverage Subsector on the Indonesia Stock Exchange in 2018-2021. International Journal of Social Science Research and Review, 5(11), 14–27. https://doi.org/10.47814/ijssrr.v6i10.609
Published
2023-10-30
How to Cite
Nur Azizah, Syamsul Ridjal, & Muhammad Irfai Sohilauw. (2023). Total Asset Turnover and Debt to Equity Ratio on Pharmaceutical Company Stock Prices: An Exploration of the Moderator Roles of Operating Efficiency. International Journal of Health, Economics, and Social Sciences (IJHESS), 5(4), 555~563. https://doi.org/10.56338/ijhess.v5i4.4504
Section
Articles
