Research Article
Analysis of Stock Return in View of Liquidity And Profitability
@INPROCEEDINGS{10.4108/eai.6-5-2023.2333552, author={Zaenal Arifin and Muhamad Halilintar}, title={Analysis of Stock Return in View of Liquidity And Profitability}, proceedings={Proceedings of the 3rd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2023, 6 May 2023, Salatiga, Central Java, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2023}, month={7}, keywords={liquidity profitability stock return}, doi={10.4108/eai.6-5-2023.2333552} }- Zaenal Arifin
Muhamad Halilintar
Year: 2023
Analysis of Stock Return in View of Liquidity And Profitability
ICLSSEE
EAI
DOI: 10.4108/eai.6-5-2023.2333552
Abstract
Investors buy shares intending to get a profit or return on the investment. Increasing corporate profitability can increase prosperity and prosperous ownership. The approach used in this research is quantitative. The quantitative approach emphasizes testing theories by measuring research variables with numbers and analyzing data using statistical procedures. The results of the tests that have been done show that CR has a significant effect on stock returns with a significance level or p-value of 0.000 <0.05. A high CR value indicates many current assets owned by a company and can signal that high liquidity guarantees the availability of funds for investor dividends thereby increasing share prices. ROA has a significant effect on stock returns. This situation indicates that high profits will attract investors to buy company shares. The results of the analytic test show that the significance value of the subtest for ROA is 0.0000 and <0.05. A high ROA value indicates an increase in performance due to higher returns. The level of ROA depends on management's control over the company's assets, which reflects the efficiency of the company's operations. The higher the ROA, the more efficient the company is. It shows that the more efficient the company is, the higher its ability to generate profits, thus affecting the increase in firm value.