Articles

Which Financial Signals Drive Stock Returns the Most? Evidence from Indonesia’s Miscellaneous Industry Sector 2022–2024

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This study examines the effects of profitability, liquidity, company size, price-to-book value, and leverage on stock returns of companies in the Miscellaneous Industry Sector listed on the Indonesia Stock Exchange during the 2022–2024 period, grounded in signalling theory. The study employed a quantitative approach using purposive sampling, selecting 40 companies with a total of 120 observations across three years. Data were analysed using multiple linear regression, preceded by classical assumption testing including normality, multicollinearity, heteroscedasticity, and autocorrelation tests.

The results show that all independent variables simultaneously exert a significant effect on stock returns (F = 12.267; p < 0.001), with the model explaining 32.1% of the variation in stock returns. Partially, profitability measured by Return on Assets has a positive and significant effect on stock returns, while price-to-book value emerges as the most dominant predictor with a standardised coefficient of 0.605 and a p-value below 0.001. In contrast, liquidity measured by the current ratio, company size measured by total assets, and leverage measured by the debt-to-equity ratio show no significant effect on stock returns.

These findings suggest that investors in this sector respond more strongly to signals of profitability and market valuation than to liquidity, asset scale, or debt structure. This study contributes to the literature on financial signal-based investment decision-making in developing country capital markets and reinforces the practical relevance of signalling theory in emerging market contexts. Company management should prioritise improving profitability and managing stock market value to attract investor interest and sustain stock return growth.

The Effect of Environmental Performance, Liquidity, and Leverage on Profitability with Firm Size as a Moderating Variable: Evidence from Mining Companies Listed on the IDX and SET (2018–2024)

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This study aims to examine the impact of environmental performance, liquidity, and leverage on profitability, with firm size acting as a moderating variable, among mining sector companies listed on the Indonesia Stock Exchange (IDX) and the Stock Exchange of Thailand (SET). Profitability serves as a critical indicator for assessing overall corporate performance.

A quantitative approach was employed, utilizing panel data regression analysis. Data processing and analysis were conducted using EViews version 13. The research sample comprised 28 mining companies listed on the IDX and 25 mining companies listed on the SET, covering the observation period from 2018 to 2024.

The empirical results reveal that environmental performance has a positive and significant effect on profitability for mining companies listed on the IDX; however, it does not significantly affect the profitability of those listed on the SET. Liquidity demonstrates a positive and significant impact on profitability across mining companies in both the IDX and the SET. Conversely, leverage exerts a negative and significant influence on profitability for companies in both markets. Furthermore, firm size fails to moderate the relationship between environmental performance and profitability in both the IDX and SET contexts. Firm size significantly moderates the effect of liquidity on profitability for companies listed on the IDX, but this moderating effect is absent for those listed on the SET. Finally, firm size is unable to moderate the impact of leverage on profitability for mining companies listed on either exchange.

Do Financial Policies and Firm Characteristics Affect Firm Value? Evidence from Indonesian Mining Firms Listed on the Indonesia Stock Exchange (2020–2024)

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Firm value reflects market assessments of a company’s financial performance and future prospects, particularly in capital-intensive and volatile industries such as mining. This study examines the effects of dividend policy, investment decisions, leverage, profitability, and firm size on firm value in mining companies listed on the Indonesia Stock Exchange during the 2020– 2024 period. Using a quantitative approach, this study employs panel data regression analysis on financial statement data obtained through purposive sampling. Firm value is measured using Tobin’s Q, while the independent variables are proxied by standard financial indicators. The results show that dividend policy, investment decisions, leverage, profitability, and firm size do not have a statistically significant effect on firm value. These findings indicate that investors in the mining sector tend to prioritize growth prospects, overall firm performance, and risk considerations rather than short-term financial policies or firm-specific characteristics. In addition, high dividend payouts may limit internal funds for investment, while investment allocation, leverage utilization, and profitability improvements may not immediately translate into higher market valuation due to perceived risks, liquidity constraints, and industry uncertainty. This study suggests that market valuation in the mining sector is influenced more by broader expectations and external conditions than by individual financial indicators, providing important implications for managers and investors in understanding firm value dynamics.

The Effect of Inflation, Economic Growth, and Leverage on Change in Profit: The Moderating Role of Interest Rate Levels at Regional and Branch Offices of PT. Bank Rakyat Indonesia (Persero) Tbk. in North Sumatra Province

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The amount of profit at PT. Bank Rakyat Indonesia (Persero) Tbk. In North Sumatra Province, Indonesia is still not optimal. The purpose of this research is to test and analyze the impact of various factors such as Inflation, Economic Growth, Leverage, and Interest Rates as moderating variables on Profit Changes. The population in this research is all financial reports of PT—Bank Rakyat Regional Offices and Branches in North Sumatra Province. Meanwhile, the sample in this research is PT’s financial report. Bank Rakyat Regional Offices and Branches in North Sumatra Province from 2018 to 2023, thus there are 6 Annual Reports. Researchers will utilize the data in the financial reports of the Regional Office and Branch Offices of PT Bank Rakyat Indonesia (Persero) Tbk. in the region as a research data source. The analysis process in this research was carried out using the Eviews. The findings of this research show that: Inflation has a negative effect and Economic Growth has a positive impact on Profit Changes. In addition, interest rates can only moderate the impact of inflation and leverage on changes in profits.

The Effect of Profitability, Liquidity, and Leverage on Stock Returns with Inflation and Interest Rates as Moderating Variables in Energy Sector Companies Listed on the Indonesia Stock Exchange for the Period 2018 – 2023

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The purpose of this study is to examine and analyze whether profitability, liquidity, and leverage affect stock returns with inflation and interest rates as moderating variables in energy sector companies listed on the Indonesia Stock Exchange for the 2018-2023 period. This study was conducted based on information obtained at the Indonesia Stock Exchange. The sampling technique used purposive sampling. The population in this study were 87 energy companies listed on the Indonesia Stock Exchange for the 2018-2023 period, with a sample size of 55 companies and 330 observations. Hypothesis testing uses pooled data regression analysis using the EViews application. The results of this study indicate that profitability has a positive effect on stock returns, liquidity has no effect on stock returns. While leverage has a negative effect on stock returns. Inflation is able to moderate the effect of profitability on stock returns, but is unable to moderate the effect of liquidity on stock returns. Interest rates are able to moderate the effect of leverage on stock returns.

Influence of Leverage, Profitability, and Price Share to Return Share in Manufacturing Companies on the IDX with Company Value as Intervening Variables

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There is fluctuation stock return value company manufacturers listed on the Indonesian Stock Exchange (BEI) from 2015 to 2019. Research​ This aim For test And analyze impact from various factor like Price Shares, Leverage, Profitability, and Company Value on Stock Returns. Study This use method descriptive quantitative. Sample study This is 18 reports finance company manufacturers listed on the IDX on in 2023. Data collection was carried out through reporting finance companies the. Data analysis was carried out use application SmartPLS. Results study showing that only Profitability and Price Share yuang can increase stock returns something company manufacturing on the Indonesian Stock Exchange. Company Values too proven No can mediate influence between variable study.

Moderating Role of Earnings Management on Leverage and Related Party Transactions Influence on the Effective Corporate Tax Rate (ETR) in Indonesian Stock Exchange Listed Industrial Companies for Periods of 2018 – 2022

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This research aims to determine how earnings management moderates the influence of leverage and related party transactions on the Effective Corporate Rate (ETR) in Indonesia Stock Exchange listed industrial sector companies for periods of 2018-2022. This research is conducted based on information obtained on the Indonesian Stock Exchange. The sampling technique for this research is purposive sampling method. The population in this study was 63 industrial sector companies listed on the IDX in 2018-2022 and the samples used are 45 companies. The type of data used is secondary data and the data analysis technique is panel data regression and the Moderate Regression Analysis (MRA) test with analysis tools using Eviews software. The results of this research show that leverage has a negative and significant effect on ETR and related party transactions have no effect on ETR in industrial sector companies listed on the IDX for the 2018-2022 period. Earnings management cannot moderate the influence of Leverage on ETR in Industrial sector companies listed on the BEI for the 2018-2022 period and earnings management cannot moderate the influence of related party transactions on ETR in industrial companies listed on the BEI for the 2018-2022 period.

The Effects of Capital Intensity, Financial Distress, Leverage, Analyst Coverage and Investment Opportunity Set on Accounting Conservatism in Politically Connected Companies Listed on Indonesia Stock Exchange

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This study aims to examine the effect of capital intensity, financial distress, leverage, analyst coverage and investment opportunity set on accounting conservatism in politically connected companies listed on the Indonesia Stock Exchange. This research was conducted on 16 state-owned companies (BUMN) listed on the Indonesia Stock Exchange for the 2017-2021 period using a proposive sampling method. This research uses multiple regression method. The results of the study show that partially analyst coverage has a positive effect on accounting conservatism. Financial distress, leverage and investment opportunity sets have a negative effect on accounting conservatism. Capital intensity has no effect on accounting conservatism.

Tax Aggressiveness in Indonesia: Insights From CSR, Financial Dynamics, and Governance

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This study explores the impact of CSR, leverage, profitability, and independent commissioners on tax aggressiveness in 45 food and beverage companies on the Indonesian Stock Exchange from 2013 to 2017. The analysis, using multiple linear regression in SPSS, revealed that CSR positively influence tax aggressiveness, while independent commissioners have a negative influence. However, neither profitability nor leverage significantly influences tax aggressiveness. We conducted a sensitivity analysis using different proxy variable for dependent variable and found that CSR and independent commissioner remain significant in both the ETR and BTD models for tax aggressiveness. However, the significance of profitability and leverage differed between the two models. In the ETR model, neither profitability nor leverage was significant. In contrast, in the BTD model, profitability was significant, but leverage was not. Our findings reinforce the importance of CSR, profitability, leverage, and independent commissioners in explaining tax aggressiveness. The study provides insight into the need for regulators to reduce tax aggressiveness by companies.

Internal Factors Affecting Firm Value (Case Study of Manufacturing Companies in Indonesia)

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Despite the pivotal role of the manufacturing sector in the Indonesian economy and its continuous growth, there exists a dearth of comprehensive research on the determinants of firm value within this sector. The lack of understanding regarding how financial factors such as leverage, liquidity, profitability, and firm size impact firm value among manufacturing companies listed on the IDX hinders effective decision-making for investors, creditors, stakeholders, and company management. This study aims to Investigate the effects of firm size, profitability, liquidity, and leverage on firm value is the main purpose of this study, which focuses on manufacturing companies listed on the Indonesia Stock Exchange (IDX). The population comprises manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2022. Using purposive sampling technique and going through the sampling criteria, a final sample of 82 companies was used in this research. The data analysis method used in this study was a regression analysis using SPSS software. The study revealed that higher debt levels (Leverage) and excessive cash reserves (Liquidity) were linked to decreased firm value. Additionally, the finding also shows that as companies became more profitable, their overall value tended to decrease. On a positive note, larger firms (Firm Size) exhibited higher company value. The findings have implications for investors, creditors, and stakeholders navigating the Indonesian manufacturing sector, providing nuanced insights into financial determinants of firm value. These findings emphasize the importance of a balanced financial strategy for companies and highlight the advantages of size in the economic landscape.