Financial Performance and Share Price: The Moderating Role of Exchange Rate
Main Article Content
Keywords
Liquidity, Profitability, Activity Ratio, Exchange Rate
Abstract
Fluctuations that occur in the financial performance of food and beverages companies may have an impact on their share price. Economic instability and the impact of Covid-19 can reduce the company's financial performance and stock performance. Therefore, this research aims to examine the effect of financial performance on stock prices in food and beverages companies from 2018 to 2022. Moreover, the novelty of this research is that it applies the exchange rate as a moderating variable. This research uses liquidity ratios, profitability, and activity ratios in measuring the company's financial performance. Multiple regression analysis using a random-effect model was applied to measure the influence of liquidity, profitability, and activity on stock prices as well as the role of the exchange rate as a moderating variable. The results of analysis revealed that liquidity, profitability, and activity ratio have positive and significant effects on share prices. In addition, the exchange rate can moderate the relationship between profitability and share price as well as the relationship between activity ratios and share price.
References
Albertus, R. H., & Mangunsong, H. L. (2021). Effect of Current Ratio, Total Asset Turnover, and Earnings Per Share on Stock Prices in Banking Sub-Sectors Listed on the Indonesia Stock Exchange 2018-2019. Strategic Management Business Journal, 1(02), 30–39. https://doi.org/10.55751/smbj.v1i02.19
Aydemir, O., & Demirhan, E. (2009). The relationship between stock prices and exchange rates evidence from turkey. International Research Journal of Finance and Economics, 1(23), 207–215. https://doi.org/10.1007/bf02296425
Badan Pusat Statistik. (2021). Produk Domestik Bruto Indonesia Triwulanan (Quarterly Gross Domestic Product of Indonesia) 2017-2021.
Badan Pusat Statistik. (2022). Kurs Tengah Beberapa Mata Uang Asing Terhadap Rupiah di Bank Indonesia (Rupiah). In Badan Pusat Statistik/BPS-Statistics Indonesia. https://jateng.bps.go.id/indicator/13/181/1/kurs-tengah-beberapa-mata-uang-asing-terhadap-rupiah-di-bank-indonesia.html
Bhati, S., De Zoysa, A., & Jitaree, W. (2019). Factors affecting the liquidity of commercial banks in India: A longitudinal analysis. Banks and Bank Systems, 14(4), 78–88. https://doi.org/10.21511/bbs.14(4).2019.08
Budiharjo, R. (2020). Effect Of Profitability On Share Prices With Capital Structure As A Moderating Variables. International Journal of Management Studies and Social Science Research, 2(8), 240–249.
Eka Sari, N. P. (2018). Penelitian ini bertujuan untuk menguji signifikansi pengaruh nilai tukar rupiah, nilai ekspor, dan pertumbuhan ekonomi terhadap profitabilitas perusahaan ekspor. E-Jurnal Manajemen Universitas Udayana, 7(8), 4181–4210.
Kamar, K. (2017). Analysis of the Effect of Return on Equity ( Roe ) and Debt to Equity Ratio ( Der ) On Stock Price on Cement Industry Listed In Indonesia Stock Exchange ( Idx ) In the Year of 2011-2015. 19(5), 66–76. https://doi.org/10.9790/487X-1905036676
Kartikaningsih, D. (2020). Pengaruh Nilai Tukar Terhadap Harga Saham Perusahaan Sektor Food and Beverage Di Masa Pandemi Covid-19. BISMA: Jurnal Bisnis Dan Manajemen, 14(2), 133. https://doi.org/10.19184/bisma.v14i2.17862
Kinasih, H. W., & Rukmana, R. H. (2021). Dampak Nilai Tukar Rupiah Terhadap Harga Saham Yang Dimoderasi Oleh Pertambahan Kasus Covid 19 Di Indonesia. Jurnal Akademi Akuntansi, 4(1), 50–55. https://doi.org/10.22219/jaa.v4i1.15557
Lt, A. M., Panjaitan, B. J. M., & Tumangger, E. M. K. (2023). Analysis of Financial Ratio at PT . Indofood Sukses Makmur Tbk in 2020-2022 Analisis Rasio Keuangan Pada PT . Indofood Sukses Makmur Tbk Tahun 2020-2022. Asian Journal of Management Analytics (AJMA), 2(2), 197–210.
Lumbantobing, R., & Salim, S. (2021). Does the Leverage Ratio Mediate the Effect of Liquidity Ratios, Profitability Ratios, and Activity Ratios on Stock Prices? (Empirical Study of Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange for the Period of 2015-2019). Enrichment: Journal of Management, 11(2), 535–543. www.enrichment.iocspublisher.org
Morris, R. D. (1987). Signalling, Agency Theory and Accounting Policy Choice. Accounting and Business Research, 18(69), 47–56. https://doi.org/10.1080/00014788.1987.9729347
Novitasari, P., & Herlambang, L. (2015). Pengaruh Current Ratio, Total Assets Turnover, Debt To Equity Ratio, dan Return On Equity Terhadap Harga Saham Pada Perusahaan Yang Terdaftar di JII Periode 2009-2013. Jurnal Ekonomi Syariah Teori Dan Terapan, 2(4), 356. https://doi.org/10.20473/vol2iss20154pp356-371
Nurwulandari, A., & Wahid, R. S. (2023). The Effect of Debt-to-Equity Ratio, Return on Asset, Current Ratio, and Total Asset Turnover on Stock Price: The Intervening Effect of Intrinsic Value in Indonesia’s Retail Business. Shirkah: Journal of Economics and Business, 9(1), 1–16. https://doi.org/10.22515/shirkah.v9i1.630
Pradnyawati, S. O., Kepramareni, P., & Dewi, T. (2021). Earning Per Share, Dividend Payout Ratio, Stock Trading Volume, Total Assets Turnover and Market Value Added On The Stock Price Of Banking Companies. 228–233. www.idx.co.id
Pranata, D., & Pujiati, D. (2015). The effect of liquidity, profitability, sales growth, and dividend policy on stock prices after the implementation of IFRS. The Indonesian Accounting Review, 5(2), 169–178. https://doi.org/10.14414/tiar.v5i2.647
Purnama, M., & Purnama, O. (2023). The Influence of Earning Per Share, Turnover of Total Asset, Return on Equity and Debt Asset Ratio on LQ45 Index Share Price Period 2017 – 2021 listed on the Indonesia Stock Exchange. ECo-Buss, 6(1), 334–344. https://doi.org/10.32877/eb.v6i1.807
Ramadhan, F., Wulandari, A., Rumengan, A. E., & Wahyuni, E. S. (2023). The Influence Of Profitability Ratio , Earning Per Share And Exchange Rate On Stock Price In Companies Including The Jakarta Islamic Index On The Indonesia Stock Exchange 2012-2016. January.
Sangadah, Z. M., & Erdkhadifa, R. (2023). Pengaruh Earning Per Share, Return on Equity, Debt To Equity Ratio Dan Current Ratio Terhadap Harga Saham Di Perusahaan Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2021. Komitmen: Jurnal Ilmiah Manajemen, 4(1), 279–293. https://doi.org/10.15575/jim.v4i1.24949
Saputri, O., & Hannase, M. (2021). Pengaruh Indikator Makroekonomi Terhadap Kinerja Keuangan Bank Umum Syariah Pada Masa Pandemi Covid-19. Jurnal Tabarru’: Islamic Banking and Finance, 4(1), 139–151. https://doi.org/10.25299/jtb.2021.vol4(1).6590
Satryo, A. G., Rokhmania, N. A., & Diptyana, P. (2016). The influence of profitability ratio , market ratio , and solvency ratio on the share prices of companies listed on LQ 45 Index. The Indonesian Accounting Review, 6(1), 55–66. https://doi.org/10.14414/tiar.v6i1.578
Sjahriza Afie, K., & Djawoto. (2021). Pengaruh Likuiditas, Profitabilitas, Dan Solvabilitas Terhadap Harga Saham Pada Perusahaan Perbankan Yang Terdapat Di Bursa Efek Indonesia. Jurnal Ilmu Dan Riset Manajemen E-ISSN: 2461-0593, 1–18.
Warrad, L. (2014). The Impact of Liquidity Through Quick Ratio on Share Price: Evidence from Jordanian Banks. European Journal of Accounting Auditing and Finance Research, 2(8), 9–14. http://dx.doi.org/10.1016/j.biochi.2015.03.025%0Ahttp://dx.doi.org/10.1038/nature10402%0Ahttp://dx.doi.org/10.1038/nature21059%0Ahttp://journal.stainkudus.ac.id/index.php/equilibrium/article/view/1268/1127%0Ahttp://dx.doi.org/10.1038/nrmicro2577%0Ahttp://
Wulandari, L., Lasiyono, U., & Firdausi, Y. K. (2022). Analisis Pengaruh Tingkat Inflasi, Nilai Tukar Rupiah, Dan Modal Kerja Terhadap Laba. Journal of Sustainability Business Research, 3(2), 329–339. www.bps.go.id
Yeboah, M., & Takacs, A. (2019). Does exchange rate matter in profitability of listed companies in South Africa? An empirical approach. International Journal of Energy Economics and Policy, 9(6), 171–178. https://doi.org/10.32479/ijeep.8208
Yuniarti, D., & Litriani, E. (2017). Pengaruh Inflasi Dan Nilai Tukar Rupiah Terhadap Harga Saham Di Sektor Industri Barang Konsumsi Pada Indeks Saham Syariah Indonesia (ISSI) Tahun 2012-2016. I-Finance: A Research Journal on Islamic Finance, 3(1), 31–52.
Zafrizal, M., Yakob, R., & Wah, L. S. (2021). The influence of liquidity risk on efficiency in rural banks: The moderating role of interbank borrowing fund. Asian Academy of Management Journal of Accounting and Finance, 17(2), 63–79. https://doi.org/10.21315/aamjaf2021.17.2.3
Aydemir, O., & Demirhan, E. (2009). The relationship between stock prices and exchange rates evidence from turkey. International Research Journal of Finance and Economics, 1(23), 207–215. https://doi.org/10.1007/bf02296425
Badan Pusat Statistik. (2021). Produk Domestik Bruto Indonesia Triwulanan (Quarterly Gross Domestic Product of Indonesia) 2017-2021.
Badan Pusat Statistik. (2022). Kurs Tengah Beberapa Mata Uang Asing Terhadap Rupiah di Bank Indonesia (Rupiah). In Badan Pusat Statistik/BPS-Statistics Indonesia. https://jateng.bps.go.id/indicator/13/181/1/kurs-tengah-beberapa-mata-uang-asing-terhadap-rupiah-di-bank-indonesia.html
Bhati, S., De Zoysa, A., & Jitaree, W. (2019). Factors affecting the liquidity of commercial banks in India: A longitudinal analysis. Banks and Bank Systems, 14(4), 78–88. https://doi.org/10.21511/bbs.14(4).2019.08
Budiharjo, R. (2020). Effect Of Profitability On Share Prices With Capital Structure As A Moderating Variables. International Journal of Management Studies and Social Science Research, 2(8), 240–249.
Eka Sari, N. P. (2018). Penelitian ini bertujuan untuk menguji signifikansi pengaruh nilai tukar rupiah, nilai ekspor, dan pertumbuhan ekonomi terhadap profitabilitas perusahaan ekspor. E-Jurnal Manajemen Universitas Udayana, 7(8), 4181–4210.
Kamar, K. (2017). Analysis of the Effect of Return on Equity ( Roe ) and Debt to Equity Ratio ( Der ) On Stock Price on Cement Industry Listed In Indonesia Stock Exchange ( Idx ) In the Year of 2011-2015. 19(5), 66–76. https://doi.org/10.9790/487X-1905036676
Kartikaningsih, D. (2020). Pengaruh Nilai Tukar Terhadap Harga Saham Perusahaan Sektor Food and Beverage Di Masa Pandemi Covid-19. BISMA: Jurnal Bisnis Dan Manajemen, 14(2), 133. https://doi.org/10.19184/bisma.v14i2.17862
Kinasih, H. W., & Rukmana, R. H. (2021). Dampak Nilai Tukar Rupiah Terhadap Harga Saham Yang Dimoderasi Oleh Pertambahan Kasus Covid 19 Di Indonesia. Jurnal Akademi Akuntansi, 4(1), 50–55. https://doi.org/10.22219/jaa.v4i1.15557
Lt, A. M., Panjaitan, B. J. M., & Tumangger, E. M. K. (2023). Analysis of Financial Ratio at PT . Indofood Sukses Makmur Tbk in 2020-2022 Analisis Rasio Keuangan Pada PT . Indofood Sukses Makmur Tbk Tahun 2020-2022. Asian Journal of Management Analytics (AJMA), 2(2), 197–210.
Lumbantobing, R., & Salim, S. (2021). Does the Leverage Ratio Mediate the Effect of Liquidity Ratios, Profitability Ratios, and Activity Ratios on Stock Prices? (Empirical Study of Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange for the Period of 2015-2019). Enrichment: Journal of Management, 11(2), 535–543. www.enrichment.iocspublisher.org
Morris, R. D. (1987). Signalling, Agency Theory and Accounting Policy Choice. Accounting and Business Research, 18(69), 47–56. https://doi.org/10.1080/00014788.1987.9729347
Novitasari, P., & Herlambang, L. (2015). Pengaruh Current Ratio, Total Assets Turnover, Debt To Equity Ratio, dan Return On Equity Terhadap Harga Saham Pada Perusahaan Yang Terdaftar di JII Periode 2009-2013. Jurnal Ekonomi Syariah Teori Dan Terapan, 2(4), 356. https://doi.org/10.20473/vol2iss20154pp356-371
Nurwulandari, A., & Wahid, R. S. (2023). The Effect of Debt-to-Equity Ratio, Return on Asset, Current Ratio, and Total Asset Turnover on Stock Price: The Intervening Effect of Intrinsic Value in Indonesia’s Retail Business. Shirkah: Journal of Economics and Business, 9(1), 1–16. https://doi.org/10.22515/shirkah.v9i1.630
Pradnyawati, S. O., Kepramareni, P., & Dewi, T. (2021). Earning Per Share, Dividend Payout Ratio, Stock Trading Volume, Total Assets Turnover and Market Value Added On The Stock Price Of Banking Companies. 228–233. www.idx.co.id
Pranata, D., & Pujiati, D. (2015). The effect of liquidity, profitability, sales growth, and dividend policy on stock prices after the implementation of IFRS. The Indonesian Accounting Review, 5(2), 169–178. https://doi.org/10.14414/tiar.v5i2.647
Purnama, M., & Purnama, O. (2023). The Influence of Earning Per Share, Turnover of Total Asset, Return on Equity and Debt Asset Ratio on LQ45 Index Share Price Period 2017 – 2021 listed on the Indonesia Stock Exchange. ECo-Buss, 6(1), 334–344. https://doi.org/10.32877/eb.v6i1.807
Ramadhan, F., Wulandari, A., Rumengan, A. E., & Wahyuni, E. S. (2023). The Influence Of Profitability Ratio , Earning Per Share And Exchange Rate On Stock Price In Companies Including The Jakarta Islamic Index On The Indonesia Stock Exchange 2012-2016. January.
Sangadah, Z. M., & Erdkhadifa, R. (2023). Pengaruh Earning Per Share, Return on Equity, Debt To Equity Ratio Dan Current Ratio Terhadap Harga Saham Di Perusahaan Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2021. Komitmen: Jurnal Ilmiah Manajemen, 4(1), 279–293. https://doi.org/10.15575/jim.v4i1.24949
Saputri, O., & Hannase, M. (2021). Pengaruh Indikator Makroekonomi Terhadap Kinerja Keuangan Bank Umum Syariah Pada Masa Pandemi Covid-19. Jurnal Tabarru’: Islamic Banking and Finance, 4(1), 139–151. https://doi.org/10.25299/jtb.2021.vol4(1).6590
Satryo, A. G., Rokhmania, N. A., & Diptyana, P. (2016). The influence of profitability ratio , market ratio , and solvency ratio on the share prices of companies listed on LQ 45 Index. The Indonesian Accounting Review, 6(1), 55–66. https://doi.org/10.14414/tiar.v6i1.578
Sjahriza Afie, K., & Djawoto. (2021). Pengaruh Likuiditas, Profitabilitas, Dan Solvabilitas Terhadap Harga Saham Pada Perusahaan Perbankan Yang Terdapat Di Bursa Efek Indonesia. Jurnal Ilmu Dan Riset Manajemen E-ISSN: 2461-0593, 1–18.
Warrad, L. (2014). The Impact of Liquidity Through Quick Ratio on Share Price: Evidence from Jordanian Banks. European Journal of Accounting Auditing and Finance Research, 2(8), 9–14. http://dx.doi.org/10.1016/j.biochi.2015.03.025%0Ahttp://dx.doi.org/10.1038/nature10402%0Ahttp://dx.doi.org/10.1038/nature21059%0Ahttp://journal.stainkudus.ac.id/index.php/equilibrium/article/view/1268/1127%0Ahttp://dx.doi.org/10.1038/nrmicro2577%0Ahttp://
Wulandari, L., Lasiyono, U., & Firdausi, Y. K. (2022). Analisis Pengaruh Tingkat Inflasi, Nilai Tukar Rupiah, Dan Modal Kerja Terhadap Laba. Journal of Sustainability Business Research, 3(2), 329–339. www.bps.go.id
Yeboah, M., & Takacs, A. (2019). Does exchange rate matter in profitability of listed companies in South Africa? An empirical approach. International Journal of Energy Economics and Policy, 9(6), 171–178. https://doi.org/10.32479/ijeep.8208
Yuniarti, D., & Litriani, E. (2017). Pengaruh Inflasi Dan Nilai Tukar Rupiah Terhadap Harga Saham Di Sektor Industri Barang Konsumsi Pada Indeks Saham Syariah Indonesia (ISSI) Tahun 2012-2016. I-Finance: A Research Journal on Islamic Finance, 3(1), 31–52.
Zafrizal, M., Yakob, R., & Wah, L. S. (2021). The influence of liquidity risk on efficiency in rural banks: The moderating role of interbank borrowing fund. Asian Academy of Management Journal of Accounting and Finance, 17(2), 63–79. https://doi.org/10.21315/aamjaf2021.17.2.3
Article Sidebar
Published
May 31, 2024
Article Details
How to Cite
Meliza, M., Magetana, D., & Ayuningtyas, A. (2024). Financial Performance and Share Price: The Moderating Role of Exchange Rate. SIMAK, 22(01), 1-15. https://doi.org/https://doi.org/10.35129/simak.v22i01.498
Section
Articles