The effect of profitability and liquidity on stock returns: a study of food & beverage sub-sector companies listed on the Indonesia stock exchange

Authors

  • Andy Dipraja Nugraha Universitas Widyatama, Indonesia
  • R. Wedi Rusmawan Kusumah Universitas Widyatama, Indonesia

DOI:

https://doi.org/10.31943/gw.v14i2.483

Keywords:

Profitability, Liquidity, Stock Return, Return On Assets, Current Ratio, Capital Gain

Abstract

This study aims to determine the effect of profitability and liquidity on stock returns. With a sample of 30 annual reports of food & beverage sector companies listed on the Indonesia Stock Exchange (IDX) for 2019-2021, the model was selected using a purposive sampling technique. In this study, the population is 30 food & beverage sub-sector companies listed on the Indonesian stock exchange for 2019-2021. The sample passion in this study is 30 food & beverage sub-sector companies listed on the Indonesian stock exchange for 2019-2021. Furthermore, the method of data collection carried out by this study’s authors itching secondary data with literature and documentation. The collected data were analyzed using multiple linear regression analysis. Based on the study’s results, it can be concluded that (1) profitability (ROA) has a significant effect on stock returns, meaning that changes in the ups and downs of profitability will affect stock returns. (2) liquidity (CR) has a significant effect on stock returns, meaning that changes in the ups and downs of liquidity values will affect stock returns.

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Published

2023-07-12

How to Cite

Nugraha, A. D. ., & Kusumah, R. W. R. (2023). The effect of profitability and liquidity on stock returns: a study of food & beverage sub-sector companies listed on the Indonesia stock exchange. Gema Wiralodra, 14(2), 766–773. https://doi.org/10.31943/gw.v14i2.483

Issue

Vol. 14 No. 2 (2023): gema wiralodra

Section

Articles

License

Copyright (c) 2023 Andy Dipraja Nugraha, R. Wedi Rusmawan Kusumah

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

The use of non-commercial articles will be governed by the Creative Commons Attribution license as currently approved at http://creativecommons.org/licenses/by/4.0/. This license allows users to (1) Share (copy and redistribute the material in any medium) or format; (2) Adapt (remix, transform, and build upon the material), for any purpose, even commercially.