The Effect Of Profitability, Leverage And Liquidity On Exchange Rate And Stock Price (Study Of Food And Beverage Sub-Sector Companies Listed On The Idx)

Abstract

This study aims to analyze the effect of profitability, leverage, and liquidity on stock prices through (intervening) currency exchange rates. Using the financial reports of manufacturing companies in the consumer goods sector, the food and beverage sub-sector, we retrieved profitability data (ROA), leverage data (DER), currency exchange rates (rupiah against the dollar), and stock prices (closing prices) of 26 companies that selected as a sample from 2019 to 2022. Data were analyzed using the Structural Equation Modeling (SEM) method. The results showed that: Profitability, Leverage, and Liquidity have a positive and significant effect on the stock prices of Food and Beverage Sub-Sector Companies. Profitability, leverage, and through the Rupiah Exchange Rate against the Dollar which has no effect on the stock prices of Food and Beverage Sub Sector Companies.