The Impact of the Liquidity Ratio and the Profitability Ratio against Shares Closing Price on The Automotive Companies which have been Registered on the Indonesian Stock Exchange During Period of 2014-2018


Authors : Dimaz Satrio Wibowo, Aldi Assyukur

Volume/Issue : Volume 5 - 2020, Issue 3 - March

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://bit.ly/39qxjUJ

Abstract : The background of this research problem was identified that automotive company stock prices experienced fluctuations that tended to decline from 2014-2018, the lack of good company liquidity as seen from the Current Ratio value of automotive companies experienced fluctuations that tended to decline, especially in 2017 which experienced a significant decline so investors are less interested in investing in the company, the lack of profitability of automotive companies is seen from the value of ROE automotive companies that experience fluctuations that tend to decline even continuously from 2014-2018.This study aims to determine the effect of Liquidity Ratios and Profitability Ratios on Stock Prices in the Automotive Company 2014-2018. The research method is quantitative that uses time series data. The population used in this study is the automotive companies listed on the Indonesia Stock Exchange as many as 12 companies. The sampling method used is purposive sampling because this study has certain sample criteria. The sample in this study was 6 samples. The analytical method used is multiple regression analysis. The conclusion of this research is that the Curent Ratio does not affect the Stock Price, while the Return on Equity affects the Stock Price, And Current Ratio and Return on Equity simultaneously influence the Stock Price.

Keywords : Current Ratio, Return on Equity, Stock Price.

The background of this research problem was identified that automotive company stock prices experienced fluctuations that tended to decline from 2014-2018, the lack of good company liquidity as seen from the Current Ratio value of automotive companies experienced fluctuations that tended to decline, especially in 2017 which experienced a significant decline so investors are less interested in investing in the company, the lack of profitability of automotive companies is seen from the value of ROE automotive companies that experience fluctuations that tend to decline even continuously from 2014-2018.This study aims to determine the effect of Liquidity Ratios and Profitability Ratios on Stock Prices in the Automotive Company 2014-2018. The research method is quantitative that uses time series data. The population used in this study is the automotive companies listed on the Indonesia Stock Exchange as many as 12 companies. The sampling method used is purposive sampling because this study has certain sample criteria. The sample in this study was 6 samples. The analytical method used is multiple regression analysis. The conclusion of this research is that the Curent Ratio does not affect the Stock Price, while the Return on Equity affects the Stock Price, And Current Ratio and Return on Equity simultaneously influence the Stock Price.

Keywords : Current Ratio, Return on Equity, Stock Price.

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