Abstract
This study aims to obtain empirical evidence of the effect of stock liquidity on the stock prices crash risk. Stock liquidity is measured by measuring Trading Volume Activity (TVA). The stock price crash risk is calculated using the negative coefficient formula model of skewness (NCSKEW). The sampling method used was purposive sampling in order to obtain 8 observation companies of the consumer goods industry on the Indonesia Stock Exchange (BEI) for the period 2010-2019. The hypothesis in this study was tested using multiple linear regression analysis model placed with Eviews9 software. Based on the test results it was found that stock liquidity as measured by trading volume activity (TVA) had a significant negative effect on the stock prices crash risk, while Size as a control variable it also has no significant effect, but the second control variable, namely price on book value (PBV) has a significant positive effect.
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