Airlangga Journal of Innovation Management
Vol. 6 No. 2 (2025): Airlangga Journal of Innovation Management

The Effect of Financial Performance on The Share Price of The Indonesian Sharia Stock Index 2019 - 2024

Razak, Keenan M (Unknown)
Wijayanti, Rahma (Unknown)



Article Info

Publish Date
28 Jun 2025

Abstract

The purpose of this research was to determine the return on capital, company growth, company size, and profitability on firm value. The quantitative method used meets the principles of systematicity, rationality, and scientific objectivity. This study makes it easier for investors to evaluate a Sharia company in Indonesia. Annual financial statements and stock price data are the secondary data used.  Statistical software is used to perform multiple linear regression analysis. Data analysis uses multiple regression test analysis tools. This study selected 20 Islamic companies with the largest market capitalization among other companies listed on the Indonesian Sharia Stock Index (ISSI), as shown in the ISSI data in 2025. This research is based on the assumption that companies with large market capitalization have a significant influence on market dynamics and provide a more accurate picture of the relationship between Islamic and conventional businesses. Financial ratios such as Return on Assets (ROA), Return on Equity (ROE), Debt to Equity Ratio (DER), and Current Ratio (CR) are the independent variables in this study, and the annual stock price of each company is the dependent variable. The results show that ROA and DER greatly affect stock prices.  The results show that investors in the stock market are more willing to invest.

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Journal Info

Abbrev

AJIM

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Airlangga Journal of Innovation Management (AJIM) aims to link the research and practice of innovation management. AJIM adopt a multidisciplinary approach to addressing the many challenges of managing innovation. AJIM encourages the submission of papers addressing the multidisciplinary nature of the ...