The Effect of Profitability and Solvability on Stock Prices of State-Owned Banks Listed on the Indonesia Stock Exchange

Authors

  • Nosilia Fristiani STIE Kesuma Negara Blitar Indonesia

DOI:

https://doi.org/10.47505/IJRSS.2022.V3.7.1

Keywords:

Profitability, Solvability, Stock Prices

Abstract

This article aims to study and analyze the effect of profitability and solvability simultaneously on stock prices. The secondary objective is to analyze the effect of profitability on stock prices and analyze the effect of solvability on stock prices. The total population in the study was 4 SOEs so that all banks were sampled, thus the sampling technique used a census. The data used are financial statements for the period 2012 to 2021. The analysis technique uses multiple regression analysis. The results of the analysis show that profitability and solvability simultaneously affect stock prices. Profitability has an effect on stock prices. Solvability does not affect the stock prices of state-owned banks listed on the Indonesia Stock Exchange. Thus, banking in order to continuously improve financial performance in order to increase the stock prices of the bank. Investors who want to invest in the capital market, they should consider the financial performance of the bank in making investment decisions, so that the company's financial prospects and future developments can be known. Where profitability can be used as an analytical tool that can represent in measuring the company's financial performance.

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How to Cite

Nosilia Fristiani. (2022). The Effect of Profitability and Solvability on Stock Prices of State-Owned Banks Listed on the Indonesia Stock Exchange. International Journal of Research in Social Science and Humanities (IJRSS) ISSN:2582-6220, DOI: 10.47505/IJRSS, 3(7), 1–6. https://doi.org/10.47505/IJRSS.2022.V3.7.1

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