Does Fundamental Analysis Still Influence Share Market Price

Often research in accounting were conducted in Stock Exchange, due to the assumption thatfinancial report should be used for decision making and stock exchange is the place wheredecision making occurred every seconds. Financial report provides information forfundamental analysis, such as profitability ratio. This ratio often used for the decision forshare trading and in theory should be reflected in the share market price. Due to the manyfactors, which could affect the share pricing, the question raised was: does profitability ratiostill significantly influence the share market price? This research aimed to find out whetherprofitability ratio influence the share market price, using the regression method and pairedsample test to measure the influence of profitability ratio on the share market price beforeand after the release of financial report. The sample of this research was financial reportsand share market price of automotive component manufacture companies listed inIndonesian Stock Exchange (IDX) during the period of 2016 – 2019. The regression modelsshowed that the profitability ratios did not have any significant influence on the share marketprice and no significant differences in share market price between before and after theissuance of financial report. This concludes that profitability information was not the majorfactor in determining share market price.