Financial Performance and Its Impact on Stock Price Volatility

Abstract; The purpose of the study is to assess how PT Adhi Karya (Persero) Tbk.'s stock price is impacted by its financial performance using quarterly data from 2013 to 2023. This study employs a quantitative methodology grounded in signaling theory and utilizes secondary data derived from the company's financial statements. The sample consists of 44 quarterly observations selected using a census approach. In this model, the stock price serves as the dependent variable, while the debt-to-equity ratio (DER), return on assets (ROA), current ratio (CR), and total asset turnover (TATO) serve as the independent variables. This study's ten-year observation period and assessment of financial performance during and after the COVID-19 pandemic are key contributions. Because of its notable stock price decrease, PT. Adhi Karya (Persero) Tbk. was chosen as the research object. The circumstances made it a pertinent case to investigate how financial indicators operate as market signals in the face of economic uncertainty. We anticipate that the results will provide empirical evidence of the extent to which financial performance influences stock price movements. These insights have the potential to assist business managers in making more informed financial decisions, investors in developing data-driven strategies, and policymakers in enhancing market resilience.