The Effect of Stock Profitability and Liquidity on Stock Volatility in Technology Companies Listed on the IDX
DOI:
https://doi.org/10.31851/jmwe.v23i3.22370Abstract
This research examines how profitability and stock liquidity impact price fluctuations for technology companies on the Indonesia Stock Exchange from the first to the fourth quarter of 2024. Researchers utilized secondary data documentation methods to evaluate a sample of 16 corporate entities. The t-test results indicate that profitability exerts a significant influence on stock volatility with a significance value of 0.019, which identifies corporate earnings as a primary driver for price movements in the tech industry. In contrast, stock liquidity shows no significant effect on volatility, as evidenced by a significance value of 0.418. Additionally, simultaneous testing reveals that profitability and liquidity do not work together to affect stock volatility within the technology sector during this period. Consequently, profitability remains the most influential factor on stock price volatility compared to liquidity for technology firms on the Indonesia Stock Exchange.
Keywords:
Profitability,StockLiquidity,Share price volatility,Technology sector.
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