East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 3 No. 8 (2024): August 2024

Analysis of Financial Ratios on Stock Prices with Profitability as a Moderating Variable for LQ45 Index Companies Listed on the Indonesia Stock Exchange

Shintianingrum, Oktavia (Unknown)
Takarini, Nurjanti (Unknown)

Article Info

Publish Date
30 Aug 2024

Abstract

The objective of this study is to examine the influence of financial ratios on stock prices, with a particular focus on the role of profitability as a moderating factor among LQ45 index companies listed on the Indonesia Stock Exchange between 2020 and 2023. The independent variables employed in this study are liquidity ratio (CR), solvency ratio (DER) and market value ratio (PER), in addition to profitability (EPS) as a moderating variable. The dependent variable is stock price. This study employs a sample of 23 selected companies included in the LQ45 index. The data analysis method utilised is multiple linear regression. The findings indicate that the liquidity ratio and solvency ratio exert no significant influence on the company's stock price. Conversely, the market value ratio exerts a significant effect on stock prices. Furthermore, profitability does not serve as a moderating variable for the liquidity and solvency ratios, whereas it does for the market value ratios on stock prices.

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Journal Info
East Asian Journal of Multidisciplinary Research (EAJMR)
Website

Abbrev

eajmr

Publisher

PT FORMOSA CENDEKIA GLOBAL

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Industrial & Manufacturing Engineering

Description

East Asian Journal of Multidisciplinary Research (EAJMR) is a scientific multidisciplinary research journal published by Yayasan Pendidikan Penelitian Pengabdian Algero. The aim of this journal publication is to disseminate the research results, conceptual thoughts, improved research methodologies ...