PENGARUH KINERJA KEUANGAN TERHADAP REAKSI PASAR PADA PERUSAHAAN MULTI FINANCE YANG GO PUBLIC DI BURSA EFEK INDONESIA

Abstract

This study aims to prove the effect of financial performance on market reactions in multi finance companies that go public on the Indonesia Stock Exchange. The measurement of financial performance used in this study is the profitability ratio projected by Return on Assets (ROA), Liquidity projected by Current Ratio (CR), Solvency projected by Debt to Assets Ratio (DAR), Leverage projected by Debt to Equity Ratio (DER), and Activity projected by Total Assets Turnover (TAT) to predict market reactions. In this study the population used is a multi finance company listed on the Indonesia Stock Exchange in 2012-2017 by using purposive sampling method as a method of determining the sample and obtained 48 research samples. Testing the hypothesis in this study uses multiple regression analysis. The results of this study indicate that profitability is projected by Return on Assets (ROA), Solvability projected by Debt to Assets Ratio (DAR), Leverage projected by Debt to Equity Ratio (DER), and Activities with Total Assets Turnover (TAT) not affect the market reaction. While financial performance Liquidity projected by Current Ratio (CR) has a positive effect on market reaction in multi finance companies that go public on the Indonesia Stock Exchange.
Keywords: Financial performance, Market Reaction, Multi Finance Company