The Effect of Financial Ratio on Stock Price Volatility

This research aims to examine the influence of financial ratios, namely TATO, EPS, ROA, and DER on company share price volatility. This information provides a signal about the company's prospects to external parties, especially investors. The population used in this research includes companies in the energy, industrial, technology and infrastructure sectors listed on the Indonesia Stock Exchange (BEI) with observation years 2020 to 2022. Sample selection used a purposive sampling technique. The total population is 215 companies with a total sample that meets the criteria of 169 companies. The analysis technique used is Multiple Linear Regression analysis with a total of 165 data processed. The results of this research show that the TATO variable has a significant positive effect on stock price volatility, while the EPS, ROA and DER variables have no effect on stock price volatility. In general, this research provides consideration of factors that influence stock price volatility for investors in investing decisions.

Authors

Institutions

Publication Details

Journal
Jurnal Wacana Ekonomi
Published
2024-12-23
DOI
https://doi.org/10.52434/jwe.v23i3.3506
Primary Topic
Financial Analysis and Corporate Governance
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

The Effect of Financial Ratio on Stock Price Volatility

Cahyani Nuswandari, Sunarto Sunarto, Stephanie Crisanti
Jurnal Wacana Ekonomi
Financial Analysis and Corporate Governance
article

The Effect of Financial Ratio on Stock Price Volatility

Cahyani Nuswandari, Sunarto Sunarto, Stephanie Crisanti
article en

Abstract

This research aims to examine the influence of financial ratios, namely TATO, EPS, ROA, and DER on company share price volatility. This information provides a signal about the company's prospects to external parties, especially investors. The population used in this research includes companies in the energy, industrial, technology and infrastructure sectors listed on the Indonesia Stock Exchange (BEI) with observation years 2020 to 2022. Sample selection used a purposive sampling technique. The total population is 215 companies with a total sample that meets the criteria of 169 companies. The analysis technique used is Multiple Linear Regression analysis with a total of 165 data processed. The results of this research show that the TATO variable has a significant positive effect on stock price volatility, while the EPS, ROA and DER variables have no effect on stock price volatility. In general, this research provides consideration of factors that influence stock price volatility for investors in investing decisions.

Jurnal Wacana EkonomiVol. 23(3)
Universitas Stikubank (ID)
Openalex Percentile: Top 51%
Financial Analysis and Corporate Governance
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.