RELATIONSHIP BETWEEN FINANCIAL RATIOS AND STOCK PRICE OF COMPANIES LISTED IN THE MARKET FOR ALTERNATIVE INVESTMENT

Abstract

The objectives of this research were to study the financial ratio and analysis the financial ratios that were correlated with the price of securities for companies listed on the Market for Alternative Investment (MAI). This was using historical data for 5 years period from 2010-2014. There were 116 companies and divided into 8 business category. The sample used in this research was the companies listed on the Market for Alternative Investment (MAI). With the financial statements and completed information which sufficient to calculate the variables as defined. The sample was collected from the companies in the business category and these companies have been registered up to 14 companies (mean 116/8 = 14). These were a group of business service and industry services ca tegory which financial period closed as at December 31st of every year. Data were collected from the stock price, annual financial report and report disclosure form (56-1). The statistics used in this study consisted of descriptive statistics and multiple regression analysis at 0.05 statistical significant levels. The Results showed a study of financial ratios of companies listed on the market for alternative investment (MAI) in 16 ratios. It was found that the financial ratios which relative to stock price in a group of business service category were an only financial ratio that is related to a stock price. This was the quick ratio that positively correlated with stock price significantly important. There was an only financial ratio in industry services category that is related to a stock price. This was liquidity ratio that negatively correlated with stock price significantly important