JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

As is well known, the Covid-19 pandemic has impacted pharmaceutical companies in Indonesia, which have played an active role in handling these extraordinary events. This study aims to determine the effect of company financial performance in terms of profitability ratios, liquidity ratios, and solvency ratios on stock returns in pharmaceutical companies in Indonesia for the 2017-2022 period. A total of eight companies listed on the Indonesia Stock Exchange were examined according to purposive sampling criteria. Observation of data from 48 annual financial reports processed using the Eviews 12 program. The results of this study indicate that Return on Assets (ROA) and Current Assets (CR) have a positive and significant effect on firm value. Earning per Share (EPS) does not affect Stock Return. Meanwhile, the Debt to Equity Ratio significantly negatively affects stock returns.

KEYWORDS:

stock returns, company financial performance.

REFERENCES:

1) Adawiyah, N. R., & Setiyawati, H. (2019). The Effect of Current Ratio, Return on Equity, And Firm Size on Stock Return (Study of Manufacturing Sector Food and Baverage in Indonesia Stock Exchange). Scholars Bulletin, 05(09), 513–520. https://doi.org/10.36348/sb.2019.v05i09.004

2) Alamgir, M., & Cheng, M. C. (2021). Effect of leverage on firm value and how the contextual variables affect this relationship: A case of Pakistan. Proceedings of the International Conference on Electronic Business (ICEB), 21, 144–153.

3) ANALYSIS OF THE EFFECT OF RETURN ON ASSET , DEBT TO EQUITY RATIO , AND TOTAL ASSET TURNOVER ON. (2021). 2(1), 64–72.

4) Anggraini, R. D., & Wijayanto, A. (2021). The Influence of Fundamental Factors on Stock Returns with Exchange Rate as Moderation Variable. Management Analysis Journal, 10(3), 305–314.

5) Astuti, D. F., Dewi, R. R., & Fajri, R. N. (2020). Pengaruh Corporate Governance dan Sales Growth terhadap Tax Avoidance di Bursa Efek Indonesia (BEI) 2014-2018. Ekonomis: Journal of Economics and Business, 4(1), 210. https://doi.org/10.33087/ekonomis.v4i1.101

6) Basaria Christina Maritoa, & LastName*, A. D. S. (2020). The Impact of Current Ratio, Debt to Equity Ratio, Return on Assets, Dividend Yield, and Market Capitalization on Stock Return (Evidence from Listed Manufacturing Companies in Indonesia Stock Exchange) . Scientific Journal of PPI-UKM, 1–7. https://doi.org/10.27512/sjppi-ukm/ses/a11052020

7) Fitria, G. N., & Handayani, R. (2019). Tax Avoidance: Studi Empiris Pada Perusahaanmanufaktur Sektor Barang Konsumsi Di Indonesia. Monex: Journal Research Accounting Politeknik Tegal, 8(1), 251. https://doi.org/10.30591/monex.v8i1.1263

8) Hidayat, I., & Khotimah, K. (2022). Pengaruh Profitabilitas dan Ukuran Perusahaan terhadap Nilai Perusahaan sub sektor kimia. Jurnal Ilmiah Akuntansi Kesatuan, 10(1), 1–8. https://doi.org/10.37641/jiakes.v10i1.1175

9) Iskandar Zulkarnain, Nanda Sulistiyowati, & Sjukun. (2022). the Effect of Return on Equity and Debt To Equity Ratio on Stock Prices in the Company Transportation Sub Sector Listed on the Indonesia Stock Exchange for the 2015-2019 Period. International Journal of Social Science, 1(6), 955–966. https://doi.org/10.53625/ijss.v1i6.1666

10) Ispriyahadi, H., & Abdulah, B. (2021). Analysis of The Effect of Profitability, Leverage and Firm Size on Firm Value. Journal of Business, Management, and Accounting, 3(2), 64–80.

11) Januar, F., Prastyo, T. J., & Syaipudin, U. (2022). Effect of Financial Performance on Stock Return During Covid-19. Jurnal Akuntansi Dan Pajak, 23(1), 1–7. http://jurnal.stie-aas.ac.id/index.php/jap

12) Melina, & Steffani. (2022). the Influence of Return on Equity, Current Ratio and Earning Per Share Toward Stock Price of Consumer Goods Industry Listed on the Indonesia Stock Exchange. 2019, 366–372.

13) Novison et al (2021) The Effect of Debt Equity Ratio and Current Ratio on Stock *corresponding author: (2021). 4, 941–956.

14) Novison et al. (2021).The Effect of Debt Equity Ratio and Current Ratio on Stock. Internatioal Sustainable Competitive Adventage.

15) Oktaria, E. T., & Arifa, S. N. (2022). the Effect of Return on Assets (Roa), Return on Equity (Roe) and Earnings Per Share (Eps) on Stock Prices in Food and Beverage Companies Listed on the Indonesia Stock Exchange 2016-2020. JIM UPB (Jurnal Ilmiah Manajemen Universitas Putera Batam), 10(2), 171–182. https://doi.org/10.33884/jimupb.v10i2.5567

16) Prasetyo, D. W., & Hermawan, A. (2023). Profitabilitas, Ukuran Perusahaan, Dan Struktur Modal Terhadap Nilai Perusahaan. Jesya, 6(1), 743–751. https://doi.org/10.36778/jesya.v6i1.1003

17) Rahmawati, Y., & Hadian, H. N. (2022). The influence of Debt Equity Ratio (DER), Earning Per Share (EPS), and Price Earning Ratio (PER) on stock price. International Journal of Financial, Accounting, and Management, 3(4), 289–300. https://doi.org/10.35912/ijfam.v3i4.225

18) Rusdiyanto, Hidayat, W., Tjaraka, H., Septiarini, D. F., Fayanni, Y., Utari, W., Waras, Indrawati, M., Susanto, H., Tjahjo, J. D. W., Mufarokhah, N., Susetyorini, Elan, U., Samsi, N., Choiri, Syamsul, M., Widodo, M., Suyanto, H., Zainal, M., & Imanawati, Z. (2020). The effect of earning per share, debt to equity ratio and return on assets on stock prices: Case study Indonesian. Academy of Entrepreneurship Journal, 26(2), 1–10.

19) Sari, N., & Astini, R. (2020). The Effect of Current Ratio, Debt to Equity Ratio, Return on Assets, And Earning Per Share on Stock Price of Conventional Taxi and Bus Companies Listed In Indonesia Stock Exchange In Period of 2013-2017. International Humanities and Applied Science Journal, 1(1), 25. https://doi.org/10.22441/ihasj.2020.v3i1.03

20) Siregar, M. Y., & Mardiana. (2020). Effect of Quick Ratio , Total Asset Turnover , and Receivable Turnover on Return on Assets in Food and Beverages Companies Listed on the Indonesia Stock Exchange ( IDX ). Budapest International Research and Critics Institude-Journal (BIRCI-Journal), 5(1), 5347–5359. www.bircu-journal.com/index.php/birci

21) Sumira, S., & Prihandini, W. (2022). GENDER DIVERSITY AS THE MODERATING FACTOR IN THE INFLUENCE OF FINANCIAL FACTORS ON THE FIRM VALUE: A STUDY ON COMPANIES LISTED IN KOMPAS 100 INDEX in 2015‐2019. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 597. https://doi.org/10.29040/ijebar.v6i1.4711

22) Tania Rahmadi, Z. (2020). the Influence of Return on Investment, Current Ratio, Debt To Equity Ratio , Earning Per Share,and Firm Size To the Dividend Pay Out Ratio in Banking Industries Listed At Indonesia Stock Exchange Period 2013-2018. Dinasti International Journal of Digital Business Management, 1(2), 260–276. https://doi.org/10.31933/dijdbm.v1i2.157

23) Wahyudi, D. E., T, S., & Rusydi, M. K. (2021). Determinants of Transfer Pricing Aggressiveness with the Moderation of Corporate Governance in Indonesia and Malaysia. Journal of Economics, Business, & Accountancy Ventura, 24(1), 23. https://doi.org/10.14414/jebav.v24i1.2536

24) Wahyuningsih, S., Wiyono, G., & Maulida, A. (2023). The Effect of Inflation, Capital Structure, and ROA on Stock Returns in Food and Beverage Companies Listed on The Indonesia Stock Exchange in 2017-2020. Invoice Jurnal Ilmu Akutansi, 5(1), 8–16.