International Journal of Economics, Commerce, and Management
Vol. 3 No. 1 (2026): International Journal of Economics, Commerce, and Management

The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia

Putri Azizah Sahirah (Unknown)
Citra Ayni Kamaruddin (Unknown)
Sri Astuty (Unknown)
Regina Regina (Unknown)
Basri Bado (Unknown)



Article Info

Publish Date
27 Jan 2026

Abstract

Stocks represent a capital market instrument with the potential to generate high returns. When making investment decisions, investors typically assess various internal aspects of a company, including its financial performance. The objective of this study is to examine the influence of profitability, liquidity, and leverage ratios on stock prices in the Indonesian banking sector, with a particular focus on state-owned banks, in both partial and simultaneous regression models. The methodology employed is quantitative analysis, with a secondary data set being utilized. The sample was determined using a purposive sampling technique, covering four state-owned banks (BRI, BNI, Mandiri, and BTN) for the 2010-2024 period. The findings of the analysis demonstrate that profitability and leverage exert a substantial negative influence on the stock prices of these banking institutions, while the liquidity ratio does not demonstrate a significant effect. Concurrently, all three variables exert an influence on stock prices, with an R-squared value of 58%.

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Journal Info

Abbrev

IJECM

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences

Description

Topics in this journal relate to any aspect of management, but are not limited to the following topics: Human Resource Management, Financial Management, Marketing Management, Public Sector Management, Operational Management, Supply Chain Management, Corporate Governance, Business Ethics, Management ...