THE EFFECT OF LIQUIDITY AND PROFITABILITY ON STOCK PRICES IN AUTOMOTIVE SUB-SECTOR MANUFACTURING COMPANIES AND COMPONENTS LISTED ON THE INDONESIAN STOCK EXCHANGE IN 2019 - 2021

Abstract

This study aims to examine and analyze the effect of liquidity and profitability on
stock prices in automotive and component sub-sector manufacturing companies on the
Indonesia Stock Exchange in 2019-2021. By using purposive sampling method, this research
sample consists of 4 companies. The analytical method used in this study is multiple linear
regression analysis, correlation coefficient analysis, analysis of the coefficient of
determination, and hypothesis testing (t test and f test). The results of the liquidity t test
using the current ratio indicate that there is a negative and significant effect on stock prices.
Meanwhile, profitability using return on assets indicates that there is no significant effect on
stock prices. The results of the f test show that together the variables of liquidity using the
current ratio and profitability using return on assets have a positive and significant effect on
stock prices. Based on the results of the determination test, liquidity using the current ratio
and profitability using return on assets has an effect of 49.4% on stock prices, the other
50.6% is influenced by other factors that are not included in the research variables.