Share prices are based on consumer demand and supply. The demand for
shares is affected by the investor's expectations of the issuing firm. Improving the
financial performance of a company will increase the expectations of investors.
This makes the shares more desirable and the price of the shares higher.
Conversely, if the financial performance of a company is not good, investor
expectations would be low, so that investors are not interested in investing in
these shares. This is what makes the stock price go down. The financial
performance of the company can be achieved by analyzing the financial
statements. One form of financial statement analysis is to analyze financial ratios
(Widayanti and Colline, 2017).
The purpose of this study is to prove the relevance of accounting
information reflected in financial ratios. The study was conducted on consumer
goods companies listed on the Indonesia Stock Exchange in 2015-2019. The
analytical tool used is multiple linear regression analysis.
The results of the analysis show that the Return on Equity has a positive
effect on stock prices, the Quick Ratio does not affect the stock prices, the Debt to
Equity Ratio does not affect the stock prices and the Total Assets Turnover does
not affect the stock prices