The Influence of Capital Structure, Profitability, and Liquidity on The Stock Prices of Telecommunications Companies Listed on the Indonesia Stock Exchange

Abstract

This study aims to determine the effect of Capital Structure, Profitability, and Liquidity on the stock prices of telecommunications companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2024. The study employs a descriptive quantitative method and utilizes secondary data in the form of financial statements from telecommunications companies listed on the IDX. The sample consists of 8 companies selected from a population of 19 telecommunications companies based on criteria regarding significant market capitalization or industry relevance during the 2018–2024 period. The results indicate that Capital Structure (DER) has no effect on stock prices, as evidenced by a t-statistic of -0.353016 (less than the t-table value of 2.00665) and a significance value of 0.7255 (greater than 0.05). Profitability (ROA) was found to influence stock prices, indicated by a t-statistic of 2.609730 (greater than the t-table value of 2.00665) and a significance value of 0.0118 (less than 0.05). Conversely, Liquidity (CR) does not affect stock prices, as shown by a t-statistic of 0.458161 (less than the t-table value of 2.00665) and a significance value of 0.6487 (greater than 0.05). Simultaneous testing revealed that Capital Structure (DER), Profitability (ROA), and Liquidity (CR) collectively influence the stock prices of telecommunications companies listed on the IDX from 2018 to 2024, with an F-statistic of 6.866335 (greater than the F-table value of 2.783) and a significance value of 0.0005 (less than 0.05). The Coefficient of Determination (R²) test indicates that the independent variables influence the dependent variable by 24.2414%.