PENGARUH PROFITABILITAS, LEVERAGE DAN UKURAN PERUSAHAAN TERHADAP HARGA SAHAM

Abstract

The research aimed to examine the effect of profitability (Return on Asset). leverage (Debt Equity Ratio), and firm
size (SIZE) on the stock price which was proxy with the stock return of the annual financial statements of Food
and Beverage companies listed on the Indonesia Stock Exchange. The data collection technique used purposive
sampling, in which the sample was based on the criteria given. Moreover, the population was Food and Beverage
companies listed on The Indonesia Stock Exchange (IDX) in the periods of 2016- 2020. Furthermore, based on
purposive sampling, there were 7 Food and Beverage companies as the sample. Additionally, the data analysis
technique used multiple linear regression. The research result showed that profitability (Return on Asset) had a
significant effect on the stock price, this is because the company can generate high profits so that it can increase
the demand for shares and in the end the stock price will be high. On the other hand, leverage (Debt Equity Ratio)
had an insignificant effect on the stock price, this is because a high debt ratio means that the company's finances
will be at risk, so that investors prefer to avoid companies that have high DER levels. In contrast, the firm size
(SIZE) had a significant effect on the stock price of Food and Beverage companies listed on the Indonesia Stock
Exchange, this is due to the good use of company assets with increased company total assets