Copyright © 2018 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. International Journal of Engineering & Technology, 7 (4.34) (2018) 270-273 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research pa The Influence of Financial Performance against Stock Prices in Companies Listed in LQ45 Index 2012 - 2016 Period John Henry Wijaya*, Gusni, Kartika Widyatama University Bandung, West Java, Indonesia *Corresponding author E-mail: John.henry@widyatama.ac.id Abstract This study aims to determine the effect of financial performance of each variable on stock price of the companies listed in the LQ45 In- dex in 2012 – 2016. This type of research used in this research is explanatory research with descriptive research method and correlation. This study used secondary data. The research population comprised LQ45 companies in 2012-2016 consisting of 45 companies. The sample was selected by the purposive sampling technique and 21 companies were included in the research sample. The data analysis technique was panel data regression using the random effect model. The results of the study showed that earnings per share had a signifi- cant effect on stock price. Cash position had a significant effect on stock price. Trading volume had a significant effect on stock price. While return on equity, debt to asset ratio and firm size did not have significant effect on stock price. The results of research F-test showed that the model in regression equation is just right. The coefficient of determination (R 2 ) in this study was 0.758096. This means that the contribution of all independent variables was explained the dependent variable was 75.8%, while the remaining 24.2% was ex- plained by independent variables outside the model. Keywords: financial performance, stock price, LQ45. 1. Introduction For companies that issue shares in the capital market, the stock price traded on the stock exchange is an indicator of the compa- ny's value [13]. If the stock price is high, then the value of the company will be high as well and this also reflects the high level of investor confidence in the company that issued the shares [14]. The trust of investors or potential investors is very beneficial for the issuer, because the more people who believe in the issuer, the desire to invest in the issuer is stronger. The more demand for shares of an issuer can increase the price of the shares. Then, the stock price is important for the company. Analysis tools about stock valuation that will be discussed in this study are fundamental analysis using data derived from financial statements. In analyzing financial statements are usually seen based on financial ratios contained in the financial statements [4]. In the study of financial performance ratios used to analyze the effect on stock prices is Return on Equity (ROE) which represents profitability ratios, Debt to Asset Ratio (DAR) represents solvency ratios, and Earning per Share (EPS) represents the market ratio, Company Size (Firm Size), Cash Position (CP) and trading vol- ume. Table 1: Stock Price Development, Size, Cash Position and EPS LQ45 Index Company [15] Year Stock Price Size Cash Position Growth Growth Growth 2012 10810 - 17.03 - 1.46 - 2013 9877 -9% 17.18 0.89% 1.62 11% 2014 11874 20% 17.33 0.89% 1.46 -10% 2015 10225 -14% 17.42 0.53% 1.93 32% 2016 11024 8% 17.49 0.36% 6.41 233% 2012 10810 - 17.03 - 1.46 - 2013 9877 -9% 17.18 0.89% 1.62 11% Based on the table above it can be seen that stock prices, company size, cash positions and earnings per share have fluctuated. In 2012 – 2013, the share price decreased while the company size and cash position experienced an increase. In 2014, the stock price increased but the increase was not followed by an increase in cash position. In 2015, the stock price experienced a decline again while the size and cash position experienced an increase. In 2016, the stock price experienced an increase while earnings per share decreased. Based on the background and phenomena that have been de- scribed the identification of the problem in this study is how the influence of the financial performance of each variable on the stock price of the companies listed in the LQ45 Index period 2012 - 2016. The purpose of this study is to determine the effect of each financial performance - each variable on the stock price of the stock price in the companies listed in the LQ45 Index for the peri- od 2012-2016. 2. Literature Review 2.1. Financial performance Financial performance is the result or achievement that has been achieved by the management of the company in carrying out its functions of managing company assets effectively during a certain period [8]. Analysis of financial performance according to [2], there are five stages namely reviewing financial report data, per- forming calculations, making comparisons of the results of the calculations that have been obtained, interpreting the various prob-