The Effect of Capital Structure and Profitability of Stock Prices in a Registered Food and Beverage Company on the Indonesian Stock Exchange

Abstract

The purpose of this study is to determine and analyze the significant effect of capital structure and profitability simultaneously or partially on stock prices in food and beverage companies listed in the Indonesia Stock Exchange and to determine and analyze the dominant variables of capital structure and profitability on stock prices. This research is a research design with a quantitative approach. The research data used is secondary data in the form of financial ratio data, while the data source is obtained through the site The population in this study were all food and beverage companies listed on the Indonesia Stock Exchange. The sampling technique used purposive sampling method so that the number of samples that could be taken was 14 companies. The data collection technique is through documentation, while the data analysis technique uses multiple linear regression models. Based on the analysis results indicate that the independent variables, namely capital structure and profitability have a significant effect on stock prices in food and beverage companies listed on the Indonesia Stock Exchange. The partial test results show that the equity structure has a significant negative effect on stock prices in food and beverage companies listed on the Indonesia Stock Exchange. Profitability has a significant positive effect on stock prices in food and beverage companies listed on the Indonesia Stock Exchange. Profitability is a variable that has a dominant effect on stock prices in food and beverage companies listed on the Indonesia Stock Exchange.