Journal of Business, Accounting and Finance
Vol. 5 No. 1 (2023): Journal Of Bisiness, Accounting & Finance

THE EFFECT OF LIQUIDITY AND PROFITABILITY ON STOCK PRICES IN AUTOMOTIVE SUB-SECTOR MANUFACTURING COMPANIES AND COMPONENTS LISTED ON THE INDONESIAN STOCK EXCHANGE IN 2019 - 2021

Tita Kartika (Unknown)
Siti Nur Fadrin (Unknown)



Article Info

Publish Date
21 Jul 2023

Abstract

This study aims to examine and analyze the effect of liquidity and profitability onstock prices in automotive and component sub-sector manufacturing companies on theIndonesia Stock Exchange in 2019-2021. By using purposive sampling method, this researchsample consists of 4 companies. The analytical method used in this study is multiple linearregression analysis, correlation coefficient analysis, analysis of the coefficient ofdetermination, and hypothesis testing (t test and f test). The results of the liquidity t testusing the current ratio indicate that there is a negative and significant effect on stock prices.Meanwhile, profitability using return on assets indicates that there is no significant effect onstock prices. The results of the f test show that together the variables of liquidity using thecurrent ratio and profitability using return on assets have a positive and significant effect onstock prices. Based on the results of the determination test, liquidity using the current ratioand profitability using return on assets has an effect of 49.4% on stock prices, the other50.6% is influenced by other factors that are not included in the research variables.

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Journal Info

Abbrev

job

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Bussines Accounting and Finance, is peer-reviewed scientific journal that can be used as a platform to publish research article in the area of Accounting & Finance, biannually in April and October. The aim of this journal is to promote increased new knowledge through scientific articles ...