DOES FUNDAMENTAL ANALYSIS STILL INFLUENCE SHARE MARKET PRICE

Often research in accounting were conducted in Stock Exchange, due to the assumption that \nfinancial report should be used for decision making and stock exchange is the place where \ndecision making occurred every seconds. Financial report provides information for \nfundamental analysis, such as profitability ratio. This ratio often used for the decision for \nshare trading and in theory should be reflected in the share market price. Due to the many \nfactors, which could affect the share pricing, the question raised was: does profitability ratio \nstill significantly influence the share market price? This research aimed to find out whether \nprofitability ratio influence the share market price, using the regression method and paired \nsample test to measure the influence of profitability ratio on the share market price before \nand after the release of financial report. The sample of this research was financial reports \nand share market price of automotive component manufacture companies listed in \nIndonesian Stock Exchange (IDX) during the period of 2016 – 2019. The regression models \nshowed that the profitability ratios did not have any significant influence on the share market \nprice and no significant differences in share market price between before and after the \nissuance of financial report. This concludes that profitability information was not the major \nfactor in determining share market price.