Ekspektra: Jurnal Bisnis & Manajemen
Vol 6 No 1 (2022)

The Effect of Financial Performance and Firm Size on Stock Return in Miscellaneous Industrial Sector on the Indonesia Stock Exchange




Article Info

Publish Date
01 Jul 2022

Abstract

The purpose of this study is to analyze the effect of profitability, liquidity, leverage, and firm size on stock returns of Miscellaneous industrial sectors on the Indonesia Stock Exchange. The sample consist of 17 companies, which are taken by purposive sampling technique. The analysis technique used is multiple linear regression. The results of this study indicate that simultaneously the variables of profitability, liquidity, leverage, and firm size have a significant effect on the stock return. Partially, profitability has a significant positive effect and liquidity has a significant negative effect on stock returns. Meanwhile, leverage and firm size partially have no effect on stock returns. The results showed that stock returns will increase with increasing profitability and low liquidity. Increased profitability of the company will increase profits that can be distributed to shareholders. The company's profitability can increase with low liquidity as long as its current assets can meet its current liabilities. This condition is attractive to investors so that the company's stock price increases as well as its stock return

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Journal Info

Abbrev

manajemen

Publisher

Subject

Economics, Econometrics & Finance Other

Description

Ekspektra: Journal of Business & Management (P-ISSN=2549-3604; E-ISSN=2549-6972) is a scientific peer-reviewed journal published by the Management Program for Economics and Business Faculty at Dr Soetomo University, Indonesia, in collaboration with Insan Doktor Ekonomi Indonesia, a professional ...