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THE INFLUENCE OF CURRENT RATIO, DEBT TO EQUITY RATIO, AND NET PROFIT MARGIN ON LQ45 STOCK RETURN IN THE INDONESIA STOCK EXCHANGE Sombolayuk, Wihalminus
Contemporary Journal on Business and Accounting Vol 3 No 1 (2023): Contemporary Journal on Business and Accounting (CjBA)
Publisher : Institut Transparansi dan Akuntabilitas Publik (INSPIRING)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58792/cjba.v3i1.34

Abstract

ABSTRACT Purpose – This study aims to find the effect of current ratio, debt to equity ratio ang net profit margin on LQ45 stock return on the Indonesia Stock Exchange. Design/methodology/approach – This study uses a quantitative paradigm with a deductive approach. Findings – The results of the study show the company's liquidity, which is proportional to the current ratio, has a positive and significant effect on company stock returns in the LQ 45 Index. The solvency of the company proxied by the debt-to-equity ratio has a positive and significant effect on the company's stock return in the LQ 45 Index. Profitability proxied by the net profit margin has a positive but not significant effect on company stock returns in the LQ 45 Index Liquidity, solvency and profitability have a significant effect on changes in stock returns. Originality – The population in this study are all issuers registered with LQ 45 from 2013 -2017 Keywords: Current Ratio, Debt to Equity Ratio, Net Profit Magin Ratio Paper Type Research Result