THE ROLE OF FINANCIAL PERFORMANCE IN INCREASING STOCK PRICES

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Jessy Safitri Sitorus, Jholant Bringg Luck Amelia Sinaga

Vol 18, No 5 ( 2023 )   |  Licensing: CC 4.0   |   Pg no: 211-222   |   Published on: 25-05-2023

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Abstract
This study aims to see the effect of financial performance on stock prices. Financial performance in this study consists of profitability, Net Profit Margin (NPM), Liquidity and Leverage. The researcher obtained data from companies listed on the Indonesia Stock Exchange in the manufacturing sector, sub-sector of various industrial materials. The population is 73 companies, and the sample is 33 companies with data for 2019-2021, so the total sample data is 99. Sampling technique using a purposive sampling technique. The data obtained is processed using the e-views application. The study results are that Profitability does not affect stock prices, Liquidity does not affect stock prices, Net Profit Margin affects stock prices, and Leverage does not affect stock prices. Furthermore, simultaneously Profitability, Liquidity and Leverage, and Net Profit Margin have no significant effect on stock prices.

Keywords:
Profitability; Liquidity; Leverage; Net Profit Margin; Share Price

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