2.3. Research Hypotheses
Based on relevant theories and concepts as well as the results of previous studies, the hypothesis used in this
study are as follows:
H1 : EPS partially significant effect on stock prices in the coal mining company listed on the Indonesia Stock
Exchange.
H2 :ROA is partially significant effect on stock prices in the coal mining company listed on the Indonesia Stock
Exchange.
H3 : EPS and ROA are jointly significant effect on the stock price on the coal mining company listed on the
Indonesia Stock Exchange.
3.Methodology
The research design used in this study is a descriptive study. Husein Umar (2013) states that "design aims to
outline the nature or characteristics of a particular phenomenon" .To support the study design, the authors use
quantitative data analysis method using the data parametric inferential statistics. Inferential statistical analysis
will be used to describe the study variables, the stock price, EPS and ROA based on data collected from the
annual statistics issued by the Indonesia Stock Exchange. The data will be used in support of this research is
secondary data. Secondary data from a form of panel data modeling which combines the data cross (cross section)
with the time series data (time series). The author uses panel data because it has several advantages compared to
the use of using time series data or cross section, namely: First, by combining the data time series and cross
section in panel data, making the number of observations becomes larger. By using a panel data model marginal
effects of the explanatory variables seen in two dimensions (individual and time) so that the estimated
parameters will be more accurate than the other models. Second, technically panel data can provide informative
data, reducing collinearity between variables and to increase the degree of freedom that means increasing
efficiency (M. Eden, 2012) .Given data to be used are secondary data, then the data collected came from sources
printed or electronic. Stock Price Data, Earnings Per Shares (EPS), and Return on Assets (ROA) were used in
this study comes from the IDX Yearly Statistics and Fact Book published by the Indonesia Stock Exchange.
The population in this study are all listed coal mining company in Indonesia Stock Exchange.
Opportunity sampling technique is sampling a total of 11 (eleven) coal mining company to be sampled. The data
collected is processed with the help of Eviews software version 7 and SPSS 17th version. Researchers chose to
use a combination of Eviews and SPSS in order to have some confidence in the testing needed to analyze the
data with panel data model. Prior to the data analysis with panel data model, the normality test done first and the
classic assumption test aims to establish the assumption that data will be processed normally distributed.
As mentioned earlier that a panel data model of the data that is a combination of cross section with
time series data is. For the cross section data regression model used is: