FINANCIAL PERFORMANCE ANALYSIS AND ITS EFFECT ON THE STOCK PRICE OF TELECOMMUNICATION INFRASTRUCTURE COMPANIES (TOWR, TBIG, AND CENT)

• Main Author: Krishna Adi, Dimitri
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63709
• Institution: Institut Teknologi Bandung

Rapid digital adoption has occurred in Indonesia as a result of the COVID-19 pandemic, which has resulted in a rise in data usage. Internet penetration in Indonesia is expected to increase in the next years, owing to the fact that the majority of Indonesia's population (approximately 54 percent) is made up of Millennials (born between 1981 and 1996) and Gen Z (born between 1997-2012). To support that, telecommunication infrastructure companies need to continue to increase the number of telecommunication towers. Based on data compiled by Ciptadana, there are almost 96 thousand telecommunication towers in Indonesia until mid-2020. Therefore, telecommunications infrastructure companies such as TOWR, TBIG, and CENT will need a lot of additional capital to be able to make massive investments in reaching the potential for data penetration in Indonesia. With the need for external funding to achieve the required capital, the company's financial health is an important factor in the success of financing with external funds. This study was conducted with the aim of comparing the financial performance of telecommunications infrastructure companies TOWR, TBIG, and CENT as measured by financial ratio comparison and find the relationship between the financial ratio and the company's stock price. For the financial health condition based on Decree No. KEP- 100/MBU/2002, TOWR is a telecommunications infrastructure company that has the best financial health condition by getting the healthy AA category, TBIG also has good financial condition by getting the healthy A category, and CENT that is growing rapidly and received poor scores by getting a less healthy B category in 2016 & BBB in 2017-2020. This study also found out the effect the eight financial ratios have on the six telecommunication infrastructure companies’ stock prices during the 5 years period. Based on the results of multiple linear regression and FTest, the prob (F-statistic) is 0.000000 < 0.10, the eight financial ratios simultaneously affect the Stock Price. From the coefficient determination (R2), the multiple linear regression model based on the eight independent variables already simultaneously affect the dependent variable Stock Price (Y) of 96.57% while the remaining 3.43% is affected by other variables outside the model.