Jurnal Ekonomi
Vol. 12 No. 3 (2023): Jurnal Ekonomi, 2023, September

THE EFFECT OF STOCK LIQUIDITY, PROFIT MANAGEMENT, INFORMATION ASYMETRY AND PROFITABILITY ON THE COST OF EQUITY CAPITAL AT CONVENTIONAL COMMERCIAL BANKS LISTED ON THE INDONESIA STOCK EXCHANGE IN 2018-2022

Damaria Silalahi (Prima Indonesia University)
Agave Orasi Manik (Prima Indonesia University)
Mika Anggreini Pandiangan (Prima Indonesia University)
Marselia Siburian (Prima Indonesia University)
Januardin Januardin (Prima Indonesia University)
Rintan Br. Saragih (Methodist Indonesia University)



Article Info

Publish Date
12 Jul 2023

Abstract

The purpose of this study is to determine and evaluate the effect partially and simultaneously of the variables of stock liquidity, earnings management, information asymmetry, and profitability on the cost of equity capital in conventional commercial banks listed on the Indonesia Stock Exchange (IDX) on the Indonesia Stock Exchange. from 2018 to 2022. Multiple linear regression is the data analysis strategy applied in this study. There are 43 companies listed on the Indonesia Stock Exchange, based on the corporate population between 2018 and 2022. There are 10 companies sampled with a total of 50 companies sampled at conventional commercial banks. The results of the study show that partially stock liquidity and profitability have a negative and insignificant effect on the cost of equity capital in conventional commercial banks listed on the IDX in 2018-2022. Meanwhile, partially, information asymmetry and earnings management have a positive and significant effect on the cost of equity capital in conventional commercial banks listed on the IDX in 2018-2022. The results show that simultaneously stock liquidity, information asymmetry, earnings management and profitability have a significant positive effect on the cost of equity capital in conventional commercial banks listed on the IDX in 2018-2022. The results of the coefficient of determination show that stock liquidity, information asymmetry, earnings management and profitability contribute 46.29% to the cost of equity capital,

Copyrights © 2023






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 ...