Institusion
Sekolah Tinggi Ilmu Ekonomi Perbanas Surabaya
Author
Hidayatullah, Wildan Widya
Subject
658.15 - FINANCIAL MANAGEMENT
Datestamp
2023-12-28 02:44:37
Abstract :
This study aims to examine and analyze the effect of capital structure, liquidity, ownership structure and company size on stock prices of LQ45 Index companies on the Indonesia Stock Exchange for the 2017-2022 period. The independent variables in this study are capital structure (DER), liquidity (Cash ratio), ownership structure (KI and KM) and company size (SIZE). The population of this study is non-banking and financial sector companies that are consistently listed on the LQ45 Index for the 2017-2022 period. The research sampling technique used purposive sampling, the number of samples was 10 companies. The analysis technique in this study used multiple linear regression analysis. The results of this study indicate that the ownership structure measured by Institutional Ownership (IC) has a significant positive effect on stock prices, Managerial Ownership (KM) has a significant negative effect on stock prices and company size is measured using (SIZE) which has a significant effect on stock prices. Capital structure, liquidity, ownership structure, and company size simultaneously influence stock prices. In an effort to increase the value of the company which is reflected through the stock price, management must try to attract other institutions to own the company's shares, thus the company will be monitored by other institutions in order to continuously increase the company's profitability. The high managerial ownership which is not matched by management's performance as the owner of the company to earn profits, causes low investor interest which causes stock prices to decline. The share price has increased due to the increasing size of the company, so the company must be able to increase its assets and make optimal use of them to attract capital market investors.