Jurnal Ekonomi
Vol. 12 No. 01 (2023): Jurnal Ekonomi, 2023 Periode Januari - Maret

THE EFFECT OF PROFITABILITY, LIQUIDITY AND LEVERAGE ON STOCK RETURNS

Dhona Silvi Fitriani (Universitas Widyatama)
Tetty Lasniroha S (Universitas Widyatama)



Article Info

Publish Date
26 Jan 2023

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.

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Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSNĀ 2301-6280, e. ISSNĀ 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...