The Influence of WACC and DER on Share Prices of Palm Oil Plantation Companies with Roe as an Intervening Variable

Iwan Prihantoro

Abstract


The palm oil industry is a strategic sector in Indonesia, with its stock price development influenced by the company's financial condition. Weighted Average Cost of Capital (WACC), Debt to Equity Ratio (DER), and Return on Equity (ROE) are factors suspected of influencing a company's stock price. However, the relationship between these variables still shows varying results, requiring further research. This study aims to analyze the effect of WACC and DER on ROE, the influence of WACC, DER, and ROE on stock prices, and the role of ROE in mediating the relationship between WACC and DER on stock prices of palm oil companies listed on the Indonesia Stock Exchange for the period 2021–2025. This study uses a quantitative approach with an explanatory research method. The research sample was obtained using a purposive sampling technique of 24 palm oil companies. The data used were secondary data from the company's annual financial reports and were analyzed using panel data regression with the help of Eviews 13 software. The results of the study indicate that WACC has an effect on ROE. DER does not have a significant effect on ROE. WACC and ROE do not have a significant effect on stock prices, while DER has an effect on stock prices. In addition, ROE is not able to mediate the effect of WACC and DER on stock prices.


Keywords


Companies; Oil; Palms; Price; Stock.

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DOI: https://dx.doi.org/10.30659/jrbi.v23i2.53025

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