Academia Open
Vol 7 (2022): December

ROA and CR's Impact on Stock Prices in IDX Main Dealers (2017-2020)

Riza Almaidah (Universitas Muhammadiyah Sidoarjo)
Nihlatul Qudus Sukma Nirwana (Universitas Muhammadiyah Sidoarjo)



Article Info

Publish Date
31 Dec 2022

Abstract

This study investigates the relationship between Return On Assets (ROA), Current Ratio (CR), and Stock Prices for Bank Companies listed in the Main Dealers of the Indonesia Stock Exchange (IDX) during the period 2017-2020. The research employs purposive sampling to select the sample, and Multiple Linear Regression as the data analysis method. The findings reveal that ROA significantly influences Stock Prices in Bank Companies listed in the IDX Main Dealers during the specified period, while CR also exerts a significant impact on Stock Prices. This research contributes to the existing literature by providing empirical evidence of the relationship between financial ratios and stock market valuation for the banking sector. The implications of these findings highlight the importance of profitability (ROA) and liquidity (CR) in influencing the stock market performance of bank companies, thereby aiding investors, analysts, and policymakers in making informed decisions regarding investment and regulatory measures in the banking industry. Highlights: Financial ratios (ROA and CR) have a significant impact on stock prices. Bank companies listed in the IDX Main Dealers are influenced by ROA and CR. The study provides empirical evidence and insights for the banking sector (2017-2020). Keywords: ROA, CR, Stock Prices, Bank Companies, IDX Main Dealers

Copyrights © 2022






Journal Info

Abbrev

acopen

Publisher

Subject

Agriculture, Biological Sciences & Forestry Arts Humanities Chemistry Computer Science & IT Earth & Planetary Sciences Economics, Econometrics & Finance Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Library & Information Science Medicine & Pharmacology Physics Social Sciences Other

Description

Academia Open is published by Universitas Muhammadiyah Sidoarjo published 2 (two) issues per year (June and December). This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge. This ...