<![CDATA[Purpose: This study investigates the effects of financial ratios and non-financial firm characteristics on stock prices and insolvency risk among Indonesian non-financial firms during 2017–2024.Research Methodology: A quantitative approach was employed using multiple linear regression to examine the determinants of stock prices and binary logistic regression to evaluate the effects of financial and non-financial variables on insolvency risk.Results: The findings reveal that profitability, leverage, number of employees, and number of shareholders significantly influence stock prices, indicating that investors consider both financial performance and firm characteristics in market valuation. Insolvency risk is primarily affected by liquidity and inventory turnover, while other variables show limited explanatory power. Stock price does not significantly affect insolvency risk, suggesting that market valuation does not effectively capture early signals of financial distress in Indonesia’s emerging market context.Conclusion: This study concludes that stock price is not a reliable early-warning indicator of insolvency risk. Effective liquidity management and operational efficiency are essential for reducing financial distress and strengthening firm resilience.Limitations: The study focuses only on non-financial firms and does not incorporate macroeconomic shocks or dynamic non-linear models. Future research should consider broader contexts and external uncertainty factors.Contribution: This study contributes to corporate finance literature by highlighting the importance of financial and non-financial signals in predicting insolvency risk. The findings support the development of early warning systems that prioritize solvency and operational indicators over market volatility.]]>
