International Journal of Economics Development Research (IJEDR)
Vol. 5 No. 4 (2024): International Journal of Economics Development Research (IJEDR)

The Effect of Profitability Ratio, Leverage Ratio, Liquidity Ratio and Activity Ratio on Stock Return with Inflation As A Moderating Variable (Study on Stocks of Companies Actively Listed in LQ-45 in The Indonesia Stock Exchange (IDX) for The Period 2018-2022)

Sholikhah, Mar'ah (Unknown)
Kartadjumena, Eriana (Unknown)



Article Info

Publish Date
01 Nov 2024

Abstract

This study aims to analyze company performance against stock returns in Companies actively listed in LQ-45 on the Indonesia Stock Exchange (IDX) in 2018 to 2022. Company performance consists of profitability ratios proxied by return on assets, leverage ratios proxied by debt to equity ratio, liquidity ratio proxied by current ratio and activity ratio proxied by total assets turnover and macroeconomic variables, namely inflation as a moderating variable. Data were collected from the Indonesia Stock Exchange website and the websites of each related company. The research method used is a descriptive and verification method with a quantitative approach. The population in this study is the financial statements of 23 companies listed actively in the LQ-45 on the Indonesia Stock Exchange (IDX) in 2018 to 2022 (5 years), namely 115 financial statements that meet the criteria. The analysis method used is panel data regression analysis and Moderate Regression Analysis (MRA). The results of the study show that the profitability ratio (ROA) and leverage ratio (DER) have a negative effect on stock returns. While the liquidity ratio (CR) and activity ratio (TATO) have a significant positive effect on stock returns. The results of this study also show that inflation cannot moderate the effect of the profitability ratio, leverage ratio, liquidity ratio and activity ratio on stock returns.

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...