Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 3 (2025): March 2025

The Effect of Profitability, Company Size, and Liquidity on Stock Prices IDX30 in the Indonesia Stock Exchange

Ade Wahyu Prasetyo (Universitas Pembangunan Nasional “Veteran” Jawa Timur)
Tri Kartika Pertiwi (Universitas Pembangunan Nasional “Veteran” Jawa Timur)



Article Info

Publish Date
26 Mar 2025

Abstract

This study examines the effect of profitability, firm size, and liquidity on the stock prices of IDX30-listed companies on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. The research utilizes secondary data obtained from IDX official sources and employs multiple linear regression analysis to assess the relationship between independent variables (profitability, firm size, and liquidity) and the dependent variable (stock price). Classical assumption tests, including multicollinearity, heteroscedasticity, autocorrelation, and normality tests, are conducted to ensure the validity of the regression model. The findings indicate that profitability and firm size have a positive and significant impact on stock prices, while liquidity negatively and significantly affects stock prices. These results suggest that companies with higher profitability and larger firm size attract more investors, leading to increased stock prices. Conversely, excessive liquidity is perceived negatively by investors, as it may indicate inefficient fund utilization. This study contributes to the understanding of stock price determinants and provides valuable insights for investors, financial analysts, and corporate decision-makers in capital market investments.

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Journal Info

Abbrev

fjmr

Publisher

Subject

Civil Engineering, Building, Construction & Architecture Computer Science & IT Decision Sciences, Operations Research & Management Education Social Sciences

Description

Formosa Journal of Multidisciplinary Research (FJMR) is a multidisciplinary journal published by Formosa Publisher. Formosa Journal of Multidisciplinary Research (FJMR) is published every month (monthly). Formosa Journal of Multidisciplinary Research (FJMR) is a peer reviewed, open access, and ...