DOES UNCERTAINTY AFFECT FIRM PERFORMANCE? EVIDENCE FROM INDONESIA
Dublin Core
Title
DOES UNCERTAINTY AFFECT FIRM PERFORMANCE? EVIDENCE FROM INDONESIA
Subject
activity, liquidity, profitability, solvency, uncertainty
Description
This study evaluates the relationship between firm performance and stock price while incorporating the uncertainty due to the COVID-19 pandemic as a control variable. A research model was
developed separating two periods: before (2019) and during (2020) the COVID-19 pandemic. The sample consisted of all companies of LQ45 Index members. This study examined quarterly panel data and a total of 360 observations. Next, the analysis evaluates the impact of actual performance on share prices using Structural Equation Modeling, more precisely SmartPLS, as an analysis tool.
The results show that the profitability, solvency, and activity ratios influence the stock price of LQ45 companies both before and during the COVID-19 pandemic, except the liquidity ratios. Meanwhile, the uncertainty has no influence on the stock price of LQ45 companies both before and during the COVID-19 pandemic. These findings imply that policymakers should respond to drivers of stock performance and regulate strategic decisions accordingly in order to mitigate their longterm impact.
developed separating two periods: before (2019) and during (2020) the COVID-19 pandemic. The sample consisted of all companies of LQ45 Index members. This study examined quarterly panel data and a total of 360 observations. Next, the analysis evaluates the impact of actual performance on share prices using Structural Equation Modeling, more precisely SmartPLS, as an analysis tool.
The results show that the profitability, solvency, and activity ratios influence the stock price of LQ45 companies both before and during the COVID-19 pandemic, except the liquidity ratios. Meanwhile, the uncertainty has no influence on the stock price of LQ45 companies both before and during the COVID-19 pandemic. These findings imply that policymakers should respond to drivers of stock performance and regulate strategic decisions accordingly in order to mitigate their longterm impact.
Creator
Elok Heniwati, Novita, & Khristina Yunita
Source
DOI: http://dx.doi.org/10.26418/jebik.v12i3.64191
Publisher
Univ. Tanjungpura
Date
01-03-2024
Contributor
Sri Wahyuni
Rights
P-ISSN : 2087-9954, E-ISSN: 2550-0066.
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) Univ. Tanjungpura 2023
Files
Collection
Citation
Elok Heniwati, Novita, & Khristina Yunita, “DOES UNCERTAINTY AFFECT FIRM PERFORMANCE? EVIDENCE FROM INDONESIA,” Repository Horizon University Indonesia, accessed April 19, 2025, https://repository.horizon.ac.id/items/show/6079.