The Effect of Probability, Liquidity and Leverage on Stock Returns in LQ45 Companies

Abstract

Investment is an activity that is very important to do at this time where investment has a role in economic growth, business development of the company and investors are expected to provide a positive reciprocal relationship that is getting profits. The purpose of this study was to examine the effect of profitability, liquidity and leverage on stock returns. The variables used are Return On Assets (ROA), Current Ratio (CR) and Debt to Equity Ratio (DER). The test in this study uses multiple linear regression using a sample of 33 active companies that are always listed on the LQ45 index in the 2017-2019 period. The results of the partial test show that ROA and DER have an effect on Stock Return, while CR has no effect on Stock Return. Simultaneously ROA, CR, and DER affect Stock Return