The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia

Putri Azizah Sahirah ; Citra Ayni Kamaruddin ; Sri Astuty ; Regina Regina ; Basri Bado
International Journal of Economics, Commerce, and... 📅 2026 Vol 3, No 1 🔗 DOI: 10.62951/ijecm.v3i1.1127
Abstract
Stocks represent a capital market instrument with the potential to generate high returns. When making investment decisions, investors typically assess various internal aspects of a company, including its financial performance. The objective of this study is to examine the influence of profitability, liquidity, and leverage ratios on stock prices in the Indonesian banking sector, with a particular focus on state-owned banks, in both partial and simultaneous regression models. The methodology employed is quantitative analysis, with a secondary data set being utilized. The sample was determined using a purposive sampling technique, covering four state-owned banks (BRI, BNI, Mandiri, and BTN) for the 2010-2024 period. The findings of the analysis demonstrate that profitability and leverage exert a substantial negative influence on the stock prices of these banking institutions, while the liquidity ratio does not demonstrate a significant effect. Concurrently, all three variables exert an influence on stock prices, with an R-squared value of 58%.
Keywords
Profitability; Liquidity; Leverage; Stock Price; Banking
How to Cite

Putri Azizah Sahirah, et al. (2026). The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia. International Journal of Economics, Commerce, and Management, 3(1). https://doi.org/10.62951/ijecm.v3i1.1127

Putri Azizah Sahirah; Citra Ayni Kamaruddin; Sri Astuty; Regina Regina; Basri Bado, "The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia," International Journal of Economics, Commerce, and Management, vol. 3, no. 1, 2026.

Putri Azizah Sahirah; Citra Ayni Kamaruddin; Sri Astuty; Regina Regina; Basri Bado. "The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia." International Journal of Economics, Commerce, and Management, vol. 3, no. 1, 2026.

Putri Azizah Sahirah; Citra Ayni Kamaruddin; Sri Astuty; Regina Regina; Basri Bado. "The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia." International Journal of Economics, Commerce, and Management 3, no. 1 (2026).

Putri Azizah Sahirah, et al. (2026) 'The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia', International Journal of Economics, Commerce, and Management, 3(1). doi: 10.62951/ijecm.v3i1.1127.

Putri Azizah Sahirah; Citra Ayni Kamaruddin; Sri Astuty; Regina Regina; Basri Bado. The Effect of Profitability, Liquidity, and Leverage Ratio on Stock Prices in the State-Owned Banking Sector in Indonesia. International Journal of Economics, Commerce, and Management. 2026;3(1).

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