Conference on Business, Social Sciences and Technology (CoNeScINTech)
Vol 2 No 1 (2022): Conference on Business, Social Sciences and Technology (CoNeScINTech)

Profitability, Leverage and Liquidity Analysis on Share Prices In Banking Companies on the Indonesia Stock Exchange

Framita Framita (Universitas Putera Batam)
Viola Syukrina E Janrosl (Universitas Putera Batam)



Article Info

Publish Date
01 Sep 2022

Abstract

This work aims to provide consideration in investing in banking companies listed on the Indonesia Stock Exchange by examining the effect of profitability, leverage and liquidity variables on stock prices. Purposive sampling is a technique to determine the sample used in this work. In which the population is 45 banking sector companies and the sample obtained is 19 banking companies listed on the Indonesia Stock Exchange for the observation period from 2017-2021. This work uses secondary data in the form of an annual report on the banking sector from the annual report published on the official website of the Indonesia Stock Exchange or from the official website of each agency. The data analysis technique uses multiple linear regression analysis and software SPSS version 25 as a medium for testing hypotheses. The results of this study prove that Profitability (Return on Equity) has a significant effect on stock prices, while Leverage (Debt to Equity Ratio) and Liquidity (Current Ratio) have no significant effect on stock prices. Profitability (Return on Equity), Leverage (Debt to Equity Ratio) and Liquidity (Current Ratio) simultaneously have a significant effect on stock prices of banking companies listed on the Indonesia Stock Exchange.

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Journal Info

Abbrev

conescintech

Publisher

Subject

Civil Engineering, Building, Construction & Architecture Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Environmental Science

Description

CoNeScINTech (Conference on Business, Social Sciences and Technology) Conducting a research is one of the implementations of Three Pillars of Higher Education that has a crucial role for the development of science, technology, and arts as well as for the improvement of the welfare of society since ...