Title: SUSTAINABLE ENERGY INVESTMENT IN REGISTERED MINING COMPANIES: A FUNDAMENTAL ANALYSIS OF INDONESIAN SHARIA STOCK INDEX
Author:
Wulan Dari
Abstract:
Purpose – This paper aims to analyzing the impact that a company’s liquidity, solvency, and profitability have on the stock prices that it must pay to be listed on the Indonesian Sharia Stock Index (ISSI).
Design/methodology/approach – The method of research used purposive sampling, and the information for the study would come from 17 different mining groups listed on the Indonesian Sharia Stock Index (ISSI). The methods of descriptive statistics, classical assumption check, more than one linear regression evaluation, and hypothesis testing were used in this study project to accomplish the task of evaluating the facts. The data that was used in this research were secondary facts that were gathered from the official website of the Indonesia stock exchange. It does this by analyzing the impact that a company’s liquidity, solvency, and profitability have on the stock prices that it must pay to be listed on the Indonesian Sharia Stock Index (ISSI).
Findings –The variables in this analysis, current ratio, debt to equity ratio, and net profit margin — were found to have no influence on stock prices. However, the fact that it was still in a pandemic condition during the period of observation, which caused the share price to decline, is the reason why there was no effect on the three variables.
Practical implications – For investors, in order to achieve sustainability in the energy sector, currently investors focus not only financial, social, and environmental information, but also information pertaining to sharia values, has evolved to convey investment information on organizations’ responsibilities for the business of energy sustainability in accordance with sharia values. The emergence of the Sharia Index in the capital markets of nations with a Muslim majority has had a significant influence on the Indonesian financial sector. Despite this, many researches are still restricted to using the fundamental data for doing conventional stock analysis by outside stakeholders (investors). In order to create a sustainable business model, research needs to take into account the fundamental analysis of investment choices made by registered mining businesses in the sharia stock.
Originality/value – Previous studies focus on analyzing the impact that a company’s liquidity, solvency and profitability have on the general stock exchange. Sharia value aspects differentiate this paper and contribute to its originality, namely, the uniqueness of the context, incorporating using registered mining companies listed on the Indonesian Sharia Stock Index (ISSI). This research used of sharia stock, focusing specifically on Muslim investors and the question of whether or not they should take into account fundamental analysis.
Keywords: Fundamental Analysis, Manager Decision, Stakeholder Theory, Mining Companies, Muslim Investment Decision, Sharia Stock.
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