INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE
Vol. 3 No. 1 (2025): January

THE IMPACT OF FINANCIAL RATIOS ON STOCK PRICE VOLATILITY: A QUANTITATIVE ANALYSIS OF LISTED COMPANIES

Muhammad Al Faridho Awwal (Unknown)



Article Info

Publish Date
30 Jan 2025

Abstract

Abstract This study aims to analyze the influence of financial ratios on stock price volatility in companies listed on the Indonesia Stock Exchange. The financial ratios analyzed include liquidity ratios (Current Ratio, Quick Ratio), profitability (Return on Assets, Return on Equity), and leverage (Debt to Equity Ratio). The research method used is a quantitative approach with panel regression analysis techniques on secondary data taken from annual financial statements and historical stock prices over a certain period. The research results indicate that liquidity and profitability ratios have a negative impact on stock price volatility, while the leverage ratio has a positive and significant effect. These findings indicate that the internal financial conditions of the company play a crucial role in shaping market risk perceptions and influencing stock price fluctuations. This research provides implications for investors, company management, and academics in understanding the role of financial indicators in the dynamics of the capital market.

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Journal Info

Abbrev

ijle

Publisher

Subject

Economics, Econometrics & Finance

Description

INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE (INJOLE) is a scientific journal that publishes articles in the Business field includes conceptual ideas in the fields of Economics, Accounting, Management, business. The scopes are Human Resource Management, Marketing Management, Financial Management, ...