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Dhona Silvi Fitriani
Universitas Widyatama

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THE EFFECT OF PROFITABILITY, LIQUIDITY AND LEVERAGE ON STOCK RETURNS Dhona Silvi Fitriani; Tetty Lasniroha S
Jurnal Ekonomi Vol. 12 No. 01 (2023): Jurnal Ekonomi, 2023 Periode Januari - Maret
Publisher : SEAN Institute

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Abstract

The study's objective is to determine whether firms' stock returns on the Indonesia Stock Exchange are affected by changes in profitability, liquidity, and leverage ratios from 2018 to 2021. Stock returns are the dependent variable, while profitability, liquidity, and leverage are the independent factors. A quantitative methodology was used for this investigation. The population for this study consists of the 35 companies trading on the Indonesia Stock Exchange in the property and real estate sub-sector throughout the period of 2018-2021. Purposeful sampling, a method of selection that does not rely on statistical likelihood, was used to choose 20 firms at random. The data was analyzed using multiple linear regression, and many hypothesis tests were carried out to determine the existence of connections between the different variables. The results show that the current ratio influences stock returns but the debt-to-equity ratio does not. Stock returns are significantly influenced by the ROA, CR, and DER, and much more so when all three are taken into account together.