The Effect of Liquidity, Solvency, Activity, and Profitability on Stock Return

Bias Kamajaya (Universitas Muhammadiyah Surakarta)
Eny Kusumawati (Universitas Muhammadiyah Surakarta)

Prosiding University Research Colloquium
Proceeding of The 15th University Research Colloquium 2022: Mahasiswa (Student Paper Presentation) B

Every investor wants a large return with the smallest risk. For this reason, investors are required to be able to predict whether their investment will make a profit or not. This study aims analyzed the effect of liquidity, solvency, activity, and profitability on stock returns. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period. Sampling using purposive sampling method with predetermined criteria. The final sample used in this study was 260 samples. This type of research is quantitative using secondary data obtained from the financial statements of manufacturing companies. The analytical method used is multiple linear regression. The results of this study indicate that liquidity, solvency, and activity have no effect on stock returns, meanwhile profitability has an effect on stock returns.