The Effect of Profitability, Liquidity, Activity, and Market Value Ratio on Stock Prices in the Manufacturing Industry Sector Listed on the Indonesia Stock Exchange
Bazfa Alya Zhofiroh *
Management Department, Faculty of Business and Economics, Universitas Islam Indonesia (UII), 55283, Daerah Istimewa Yogyakarta, Indonesia.
Zaenal Arifin, M, Si. *
Management Department, Faculty of Business and Economics, Universitas Islam Indonesia (UII), 55283, Daerah Istimewa Yogyakarta, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This study aims to determine the effect of profitability, liquidity, activity, and market value ratio on stock prices in manufacturing industry companies. The research method uses multiple linear regression analysis with the help of SPSS for as many as 27 companies listed on the Indonesia Stock Exchange in 2018-2022 with Purposive Sampling. The results showed that profitability, as measured by ROA and NPM of the complete model, had a significant effect on stock prices, but ROA and NPM of the short model had no significant impact on stock prices. While profitability, as measured by ROE, has no significant effect on stock prices. The results of liquidity research, as measured by CuR, QR, and CaR, show no significant impact on stock prices. As measured by TATO, ratio activity significantly affects stock prices, while ratio activity, as measured by ITO and WCT, has no significant impact on stock prices. The market value ratio measured by DY significantly affects stock prices, while the market value ratio measured by PBVR and PER has no significant impact on stock prices.
Keywords: Profitability, liquidity, activity, market value ratio, stock price
How to Cite
Downloads
References
Zvi Bodie, Kane A, Marcus AJ. Investments and portfolio management. 9th ed. New York: McGraw-Hill/Irwin; 2012.
IDX. Go Public Guide. Indonesia Stock Exchange; 2017.
Husnan Suad. Financial Management: Theory and Application Book 1. Edition 4. Yogyakarta: BPFE; 2008.
Hartono J. Portfolio and investment analysis. Publisher Andi; 2022.
Amalya NT. Effect of return on assets, return on equity, net profit margin and debt to equity ratio on stock price. Journal of Securities. 2018;1(3):157–181.
Destina Paningrum SE, MM. Capital market investment reference book. Chakra Brahmana Lentera Institute; 2022.
Tandelilin E. Investment analysis and portfolio management. Yogyakarta: BPFE-Yogyakarta; 2017.
Hartono MJ. Portfolio theory and investment analysis. Yogyakarta: BPFE-Yogyakarta; 2009.
Brigham EF, Houston JF. Fundamentals of financial management. 14th ed. Translated by N.I. Greetings and Translated by F. Kusumastuti. Jakarta: Salemba Empat Publishers; 2018.
Siswanto E. Basic financial management textbook (1st Ed.). Publisher of the State University Of Malang; 2021.
Werner R, Murhadi. Analysis of financial statements, Projections and Stock Valuations. Jakarta: Salemba Empat; 2013.
Halim A, Hanafi MM. Financial Statement Analysis. UPP STIM YKPN; 2016.
Purnamawati Y, Panjaitan F, Marheni. Analysis of the influence of return on assets (ROA), earning per share (EPS), price earning ratio (PER), and net profit margin (NPM) on stock price (Study of Telecommunication Companies Listed on the Indonesia Stock Exchange 2012-2016 PERIOD). Progressive Scientific Journal of Accounting and Finance (JIPAK). 2017; 13(2):25–35.
Nurlia N, Juwari J. The effect of return on assets, return on equity, earnings per share and current ratio on stock price in the automotive and component sub-sector companies listed on the Indonesia stock exchange. Journal of Geo Ekonomi. 2019;10(1):57–73.
DOI:https://doi.org/10.36277/geoeconomics.v10i1.50
Utami MR, Darmawan A. The influence of DER, ROA, ROE, EPS and MVA on stock price in the Indonesian Sharia stock index. Journal of Applied Managerial Accounting. 2018;2(2):77–89.
Ilmiyono AF. The effect of ROE, ROA and EPS toward stock prices in company sub sector construction and buildings listed in exchange Indonesia effect (IDX). International Journal of Latest Engineering and Management Research (IJLEMR). 2019;4(8):24–35.
Agnatia V, Amalia D. Effect of economic value added (EVA) and profitability ratio on stock price. Journal of Applied Managerial Accounting. 2018;2(2):290–303.
Tumonggor M, Murni S, Rate PV. Analysis of the influence of current ratio, return on equity, debt to equity ratio and growth on stock return in the cosmetics and household industry which are listed on the IDX for the 2010-2016 period. EMBA Journal: Research Journal of Economics, Management, Business and Accounting. 2017;5(2):2203–2210.
DOI:https://doi.org/10.35794/emba.5.2.2017.16519.
Aryanti RP. Effect of dividend yield, retention ratio, eps, and roe on stock price. Scientific Journal of Edunomics. 2021;5(1).
DOI: https://doi.org/10.29040/jie.v5i1.2117.
Ramadhani I, Zannati R. Effect of profitability, liquidity, solvency on stock prices. Journal of Strategy Management and Business Applications. 2018;1(1):59–68.
Widiana A, Yustrianthe RH. The Influence of Financial Performance on the Stock Return of State-Owned Companies. Unified Scientific Journal of Accounting. 2020;8(3):425–434.
DOI: https://doi.org/10.37641/jiakes.v8i3.382.
Suryanengsih TD, Kharisma F. Current Influence Ratio and Quick Ratio to Share Prices in Consumer Goods Companies Listed on the IDX for the 2013–2017 Period. Borneo Student Research. 2020;1(3):1564–1570.
Nurkholifah S, Kharisma F. The effect of cash ratio on stock prices in consumer goods companies listed on the IDX for the 2013–2017 period. Borneo Student Research. 2022;1(3).
Natalia N, Nurwulan Purnasari, Ratnawaty Lumbantoruan and Ermina Waruwu. The effect of TATO, DER, ROE, PER on stock prices in the IDX consumer goods sector in 2016-2018. Journal of Economic Paradigm. 2021;16(3):451–460.
DOI:https://doi.org/10.22437/jpe.v16i3.12763.
Deviyanti, Safitri H. The effect of working capital turnover, receivable turnover, and inventory turnover on share prices in mining sector companies on the IDX. Journal of Productivity. 2021;8(1):74–81.
DOI:http://dx.doi.org/10.29406/jpr.v8i1. 3086
Setyardiani DW, Fuadati SR. Effect of der, profitability and working capital turnover on stock pricE. Journal of Management Science and Research. 2017;6(7).
Suharti S, Tannia Y. Analysis of the Effect of Debt to Equity Ratio, Debt to Asset Ratio, Price Earning Ratio and Price to Book Value on Stock Prices in Agricultural Sector Companies. INVEST: Journal of Business Innovation and Accounting. 2020;1(1):13–26.
DOI:https://doi.org/10.55583/invest.v1i1.19
Akuba A, Hasmirati H. Effect of dividend yield and dividend payout ratio on share prices in chemical sub sector companies listed on the IDX. Journal of Sinar Management. 2021;8(2):155–160.
DOI:https://doi.org/10.56338/jsm.v8i2.1656
Ahmad K. Fundamentals of working capital management. Jakarta: Rineka Cipta; 1997.
Natural E. The influence of profit management on underpricing and stock returns after initial public offering on the indonesia stock exchange period 2015 – 2019. Al-Mal: Journal of Islamic Accounting and Finance. 2021;2(01):92–111.
DOI:https://doi.org/10.24042/al-mal.v2i01.8028.
Harjito A, Martono SU. Fourth printing. Financial Management 2nd edition. Ekonisia; 2014.
Harry. Financial Statement Analysis. Jakarta: Grasindo; 2016.
Horne James C. Van, John M. Wachowicz. Principles of financial management. translated by Dewi Fitriasari and Deny A. Kwary. Jakarta: Salemba Empat; 2009.
Jogiyanto. Portfolio Theory and Investment Analysis. Yogyakarta: BPFE; 2017.
Kamaruddin Ahmad. Fundamentals of Investment Management. Jakarta: Rineka Cipta; 1996.
Cashmere. Financial Statement Analysis. Depok: Rajawali Press; 2018.
Octavian Reza. The Effect of earning per share (EPS) and dividend per share (DPS) on the share price of pt Wijaya Karya (PERSERO) Tbk. Journal of Securities (Stocks, Economics, Finance and Investments). 2019;2(2):156-171.
Rahardjo Sapto. Asset building wealth tips (stock investing guide). Jakarta: PT. Elex media Komputindo; 2006.
Sunariyah. Introduction to Capital Market Knowledge, Cet. 1. Yogyakarta: UPP AMP YKPN; 2010.