Financial Performance, Stock Returns and Liquidity Moderation (A Study of LQ-45) Indexed Companies on the Indonesian Stock Exchange 2020-2023

¹Arnold R. Samar, ²Yoosita Aulia, ³Alberta Esti Handayani

Abstract

The objective of this study is to examine the impact of financial performance on stock returns. The population under investigation in this study consisted of all companies included in the LQ-45 index on the IDX for the period 2020-2023, amounting to 63 companies in total. The sampling method employed was purposive     sampling. The sample consisted of 76 companies, with 19 companies in each of the  four years from 2020 to 2023. The data analysis method employed is moderation regression analysis (MRA). The findings of this study indicate that financial performance has significant influence on stock returns and liquidity can moderate the influence of financial performance on stock returns. This research contributes to providing input to investors who want to invest their funds in a company that the ROE of a company can be an indication of the high or low value of a company. High liquidity reflects the company’s ability to distribute dividends to investors.