Financial ratios' impact on stock prices in indonesian retail companies amid the covid-19 events in 2020–2022
Article Sidebar
Main Article Content
Abstract
The purpose of this study is to assess the financial ratios of the stock prices of retail companies listed on the Indonesia Stock Exchange between 2020 and 2022 when the COVID-19 pandemic causes economic volatility. The financial ratios in this study include debt-to-equity ratio (DER), return on equity (ROE), and return on assets (ROA). The research methodology used is a quantitative approach using multiple regression analysis. Evaluate the relationship between debt-to-equity ratio (DER), return on equity (ROE), and return on assets (ROA) in stock prices. The second-party data came from the company's audited financial records and was analyzed using SPSS 27. The research findings show that return on assets (ROA) has a positive and significant impact on stock prices. This finding also indicates that companies have been efficient with their assets, which generates profits, which is an important factor in determining stock prices. Return on Equity (ROE) has a positive and significant impact on share price. This is evident from the fact that companies have used efficient asset disposal procedures during the COVID-19 pandemic, resulting in high profits that can contribute to an increase in stock prices. Debt to Equity Ratio (DER) has a significant negative effect on stock prices. It can be seen that companies can optimally manage their finances and silently create favorable financial conditions for the company. This can have an impact on increasing the company's share price. Simultaneously, Return on Equity (ROE), Return on Asset (ROA), and Debt to Equity Ratio (DER) have a significant influence on stock prices. This research can be applied to Return on Equity (ROE), Return on Asset (ROA), and Debt to Equity Ratio (DER) together affect the stock price of retail companies in Indonesia. This information can be useful for investors and financial management for the development of decisions in investment, and it is very important that financial analysis can be used as a guide when developing decisions in investment
Downloads
Article Details
Astuti, P. B., & Mahardhika, A. S. (2020). COVID-19?: How Does It Impact to Indonesian Economy? Jurnal Inovasi Ekonomi, 05(02), 85–92.
Astuti, P., & Sari, Y. L. (2018). Analisis Pengaruh Return On Equity, Earning Per Share, Price To Book Value, Book Value Per Share, Price Earning Ratio dan Kepemilikan Institusional terhadap Harga Saham Perusahaan. Jurnal Ekonomi, 20(2), 170–183.
Bodie, Z., Kane, A., & Marcus, A. J. (2022). Essentials of Investments (12th ed.). McGraw Hill LLC.
Budiarso, N. S., Hasyim, A. W., Soleman, R., Zam, I. Z., & Pontoh, W. (2020). Investor behavior under the Covid-19 pandemic?: the case of Indonesia. Investment Management and Financial Innovations, 17(3), 308–318. https://doi.org/http://dx.doi.org/10.21511/imfi
Burt, S., & Maglaras, G. (2022). Special Issue on Covid-19 and Retailing. The International Review of Retail, Distribution and Consumer Research, 32(2), 127–129. https://doi.org/10.1080/09593969.2022.2052464
Devy, V. I., & Manunggal, S. A. M. (2023). Pengaruh Rasio Profitabilitas, Rasio Likuiditas Dan Risiko Keuangan Terhadap Harga Saham Perusahaan Yang Terdaftar Bei Periode 2019-2021. Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 7(1), 441–457. https://doi.org/https://doi.org/10.31955/mea.v7i1.2957
Dewi, K. Y., & Rahyuda, H. (2020). Pengaruh Profitabilitas, Likuiditas Dan Kebijakan Dividen Terhadap Nilai Perusahaan Sektor Industri Barang Konsumsi Di BEI. E-Jurnal Manajemen, 9(4), 1252–1272.
Hamal, J., & Gautam, R. R. (2021). Capital Market Response to COVID-19 Pandemic – A Systematic Review on Stock Volatility and Performance. Marsyangdi Journal, II, 27–49.
Iswati, S., Sudarsono, & Astuti, P. (2022). The Impact of Covid-19 Pandemic on Growth of Retail Business In Indonesia. Proceedings of the First Multidiscipline International Conference. https://doi.org/http://dx.doi.org/10.4108/eai.30-10-2021.2315781
Kustiyono, Rachmawati, M., & Aziz, A. (2022). Covid-19 Pandemic: Its Effect On Retail Business Growth In Indonesia. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 515–520.
Markonah, M., & Cahaya, Y. F. (2023). Effect of Net Profit Margin (NPM), Return on Assets (ROA), and Debt to Equity Ratio (DER) to Share Prices in Property Companies Registered on the Stock Exchange Indonesia ( IDX ). Journal of Accounting and Finance Management (JAFM), 4(2), 227–242. https://doi.org/https://doi.org/10.38035/jafm.v4i1
Miftahuddin, A., & Mahardhika, A. S. (2019). Determinan Harga Saham Pada Perusahaan Retail Yang Terdaftar Di Bursa Efek Indonesia. Accounting and Management Journal, 3(2), 57–68. https://doi.org/https://doi.org/10.33086/amj.v3i2.1316
Mustaffa, M., & Syabani, M. (2021). Analysis Of The Influence Of CR, EPS, ROE, and DER On Stock Prices in basic Industry And Chemical Sectors During Year 2017. Dinasti Journal of Economics, Finance and Accounting, 1(6), 1013–1022. https://doi.org/https://doi.org/10.38035/dijefa.v1i6.724
Noersyahbani, D. (2022). Pengaruh Current Ratio, Debt To Equity Ratio Dan Return On Ajsset Terhadap Harga Saham Pada Sub Sektor Retail Trade Yang Terdaftar Di Bursa Efek Indonesia Tahun 2015-2020. Universitas Batanghari Jambi.
Nuraeni, R., Barnas, B., & Tripuspitorini, F. A. (2021). Pengaruh CR, DER, dan ROE terhadap Harga Saham Perusahaan LQ45 di BEI. Indonesian Journal of Economics and Management, 1(3), 634–641. https://doi.org/10.35313/ijem.v1i3.3094
Santoso, I. G., & Meidiaswati, H. (2022). The Influence Of Financial Performance On Stock Return In Retail Company. Jurnal Ekonomi Dan Bisnis Airlangga, 32(2), 138–149. https://doi.org/10.20473/jeba.V32I22022.138-149
Sopha, B. M., Arvianto, A., & Tjahjono, B. (2022). Survival Strategies of Traditional Retailers during the COVID-19 Pandemic?: Some Insights from a Developing Country. Journal of Industrial Engineering and Management, 15(2), 185–201. https://doi.org/https://doi.org/10.3926/jiem.3698
Sudana, I. M., & Arlindania, P. A. W. (2011). Corporate Governance Dan Pengungkapan Corporate Social Responsibility Pada Perusahaan Go-Public Di Bursa Efek Indonesia. Jurnal Manajemen Teori Dan Terapan, 4(1), 37–49. https://doi.org/https://doi.org/10.20473/jmtt.v4i1.2411
Tanjungsari, I., & Djazuli, A. (2016). Pengaruh Terhadap Harga Saham (Studi pada Perusahaan Ritel yang Terdaftar di Bursa Efek Indonesia Periode 2012-2016). Jurnal Ilmiah Manajemen FEB, 6(1), 1–12.
Widyadhana, Z. N., Isnurhadi, Widiyanti, M., & Adam, M. (2022). The Effect of Sales Growth, Earning Per Share, Total Assets turnover, Return on Equity, and Debt to Equity on Stock Prices during the COVID-19 Pandemic. Journal of Business, Economics & Management, 5(3), 211–216. https://doi.org/https://doi.org/10.21744/ijbem.v5n3.1946
Zhang, Z. (2023). Impact of Investor Behavior on Stock Returns during COVID- 19?: A Systematic Review of Global Academic Papers. Highlights in Business, Economics and Management, 21, 900–905. https://doi.org/10.54097/hbem.v21i.14795
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.