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Intan Puspita Rini, Dwi Muhammad Naufal, Muhammad Syahrul Kanji, Tiara Amelia, Esa

Nurjannah (2024) Analysis of Factors Affecting the Stock Price of Manufacturing Companies in the

Food and Beverage Sub-Sector Listed on the IDX in 2020-2022, (06) 07,

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Ridwan Institute

ANALYSIS OF FACTORS AFFECTING THE STOCK PRICE OF

MANUFACTURING COMPANIES IN THE FOOD AND BEVERAGE SUB-

SECTOR LISTED ON THE IDX IN 2020-2022

Intan Puspita Rini, Dwi Muhammad Naufal, Muhammad Syahrul Kanji, Tiara

Amelia, Esa Nurjannah

Universitas Islam Jakarta, Indonesia

Email: [email protected]

Abstract

The purpose of this journal is to investigate the influence of profitability and liquidity

on the stock prices of manufacturing companies, particularly in the food and beverage

subsector listed on the Indonesia Stock Exchange (IDX) during the period 2020-2022.

The background of this journal stems from increased competition in the business world,

prompting companies to adapt to avoid bankruptcy. One way to enhance capital is

through the sale of stocks. The data sources for this journal are financial reports of

manufacturing companies, specifically in the food and beverage subsector listed on the

IDX from 2020 to 2022. The type of data used is secondary data derived from financial

reports of companies in the food and beverage subsector listed on the IDX during the

period 2020-2022, with a population consisting of 87 companies. The sampling method

employed was purposive sampling, resulting in a total of 23 companies and 69 research

samples from 2020 to 2022. This journal employs data analysis techniques including

various regression analysis methods. Based on the research findings from various

methodologies, it is found that profitability (Net Profit Margin) significantly influences

stock prices. However, liquidity (Current Ratio) does not significantly affect food and

beverage companies listed on the Indonesia Stock Exchange (IDX).

Keywords: Stock Price, Liquidity, and Profitability.

INTRODUCTION

In the increasingly advanced business world, Indonesia is one of the countries that

offers promising market potential in investment, especially in the manufacturing industry.

As a work unit that produces products, a company must utilize the right sources of

internal and external funding to increase production capacity and other investments.

Before investing in the capital market, of course, investors do careful calculations and

considerations. Understanding the magnitude of the influence of variables that can affect

the effect of fluctuations on purchases requires gathering a variety of information.

Changes in supply and demand can affect stock prices. For investors, stock price is a

JOURNAL SYNTAX IDEA

p–ISSN: 2723-4339 e-ISSN: 2548-1398

Vol. 6, No. 07, Juli 2024

Analysis of Factors Affecting the Stock Price of Manufacturing Companies in the Food and

Beverage Sub-Sector Listed on the IDX in 2020-2022

Syntax Idea, Vol. 6, No. 07, Juli 2024 3269

benchmark of a company's good or bad performance. Companies must operate in pursuit

of maximum profits and share those profits with investors to create mutual wealth.

The capital market is an effective platform to increase fund growth through

investment, where investors invest capital in the form of stocks, bonds, mutual funds, and

other securities which are then sold and bought in the capital market. Therefore, the

capital market can be considered as like the goods and services market in general, there

are buying and selling transactions between business entities and investors. One way that

entrepreneurs can use to raise funds is by investing in the capital market. When a

company makes an investment, it receives funds from investors who have invested their

capital in the company with the aim of increasing the development and growth of the

company.

Stocks are one of the most common financial products and can be traded by the

general public through stock exchanges and investment companies. The advantages of

investing in stocks can be divided into two categories: dividends and capital gains.

Dividends are a part of the profits distributed by the company to investors as a result of

the profits earned by the company. Meanwhile, Capital gain is the result of the subtraction

of the price at the time of buying with the price at the time of sale. On the other hand, the

risks of investing in stocks include the risk of liquidation and Capital Loss.

The stock price itself continues to fluctuate, so investors are expected to conduct a

comprehensive analysis to minimize risk and increase profits. An important factor in

analyzing stock prices is the availability of financial statements of public companies.

Many accounting procedures included in financial statements serve as a means of

interaction between real financial events, the activities of business organizations, and

shareholders (stockholders).

According to (Simanjuntak, 2024), several fundamental factors affect stock prices

as independent variables, namely Earnings Per Share (EPS), Dividend Per Share (DPS),

Net Profit Margin (NPM), Return On Assets (ROA), and Price Earning Rition (PER).

They are considered a good indicator for investment decision-making. These factors

significantly influence a stock's price level, so it cannot be assumed that the stock price

will be stable or fluctuate depending on the company's performance. Companies in the

food and beverage industry need to maintain financial performance and maintain business

performance in order to achieve the goals of their establishment and attract investors to

invest their money. The financial performance of a company is a comprehensive picture

of the company's financial position, which is analyzed using financial analysis tools. The

various types of financial performance analyzed include liquidity ratios, activity,

solvency, profitability, and profitability. Financial ratio analysis involves calculating and

interpreting financial ratios obtained from financial information contained in financial

statements. These financial ratios are used to reflect the financial state of the company and

provide a clearer picture of the company's financial position. Therefore, ratio analysis can

be used as an effective tool to predict the financial status and future performance of a

company. The financial condition of a company plays an important role when analyzing

stock price performance.

Intan Puspita Rini, Dwi Muhammad Naufal, Muhammad Syahrul Kanji, Tiara Amelia,

Esa Nurjannah

3270 Syntax Idea, Vol. 6, No. 07, Juli 2024

Profitability is a company's ability to generate profits that shows that the company

can meet its obligations to lenders and is an important element in determining the

company's future prospects. Profitability is a measure used to assess a company's ability

to generate profits as stated by Kasmir in 2018. To maintain stability and existence in the

business world, every company certainly strives for high profitability, which determines

the company's survival in the future. In addition, profitability also affects investor policies

and investments. If a company has good profitability, then many investors will invest in

the company or invest in its shares. To measure the size of the profit margin, the net profit

margin (NPM) is used. This ratio shows what percentage of net profit is generated from

each sale. Net profit margin is a ratio used to measure the ratio of net profit to net sales

(Mustakim, 2021).

At the same time, in increasing the profit of a company, the company's management

must be able to reduce costs effectively and efficiently so that the increase can run

smoothly. If a company has high profitability, it must be accompanied by a good level of

liquidity ratio. This makes it easier for the company to allocate dividend funds to

shareholders, while strengthening its liquidity position. (Aryanto, 2023) explained that the

liquidity ratio measures a company's ability to meet its short-term obligations. This ratio

is very important because failure to pay obligations can lead to the bankruptcy of the

company. This ratio measures a company's short-term liquidity capacity by looking at

current assets against its liabilities.

To measure the level of liquidity, researchers use the Current Ratio (CR) which can

measure the liquidity status of a company and also as an indicator to find out and predict

the extent of the company's ability to meet its financial obligations. The current ratio can

show the ability of a company's current assets to cover its short-term liabilities (Harahap,

2018).

From the results of a previous study by Hakim, Pasaribu, Gulo, Katharina, &

Kalsum, (2023) the study discussed how Earnings Per Share, Return On Equity, and Net

Profit Margin affect the stock prices of consumer goods industry companies listed on the

Indonesia Stock Exchange (Harahap, 2011; Lutfi & Sunardi, 2019). The results of the

partial test (t-test) show that Earnings Per Share has a significant influence on the stock

price. Meanwhile, the Ratio on Equity does not have a significant effect on the stock

price, and the Net Profit Margin also does not have a significant effect on the stock price.

In the research of Haryani, (2021) they discussed how liquidity, profitability, and

solvency of companies affect the stock prices of banking companies listed on the

Indonesia Stock Exchange (IDX). The study shows that the Current Ratio, Return on

Asset, and Debt to Equity Ratio have a significant influence on the Stock Price

simultaneously. But on the other hand, the Current Ratio and Debt to Equity Ratio do not

have a significant influence on stock prices (Tangngisalu, 2022).

Based on the previous studies mentioned above, there is a difference (research gap)

in the results of these studies. Therefore, the researcher is interested in examining the

influence of profitability (net profit margin) and liquidity (current ratio) of manufacturing

Analysis of Factors Affecting the Stock Price of Manufacturing Companies in the Food and

Beverage Sub-Sector Listed on the IDX in 2020-2022

Syntax Idea, Vol. 6, No. 07, Juli 2024 3271

companies on stock prices in the food and beverage subsector listed on the IDX from

2020 to 2022.

RESEARCH METHOD

This type of research uses quantitative research. According to Sugiono, (2019),

quantitative research is a research method based on the philosophy of positivism, which

is considered a scientific method because it has fulfilled the rules concretely or

empirically, objectively, measurably, rationally, and systematically.

The type of data source for this research is secondary data derived from the

financial statements of manufacturing companies listed on the Indonesia Stock

Exchange (IDX) in the food and beverage subsector for the period 2020 to 2022. The

sampling method used in this study is the purposive sampling method, so that a sample

of 69 data was obtained from 2020 to 2022 as seen in Table 1.

Table 1 Sampling Criteria

No.

Kriteria

Total

Food and beverage sub-sector companies listed on the IDX for the

period 2020-2022

Companies that do not publish complete financial statements

Companies that are not profitable from 2020-2022

(58)

(6)

Sample Size

Source: Data processed

The population in this study consists of company data totaling 87 companies.

Based on the specified sampling criteria, a sample of 23 company data was obtained.

The sample of company data collected from 2020 to 2022 amounted to 69.

The data analysis of this study includes the Classical Assumption Test, Model

Conformance Test, Multiple Linear Regression Test, and Hypothesis Test. This analysis

was carried out using the SPSS22 application, which is known to have high statistical

calculation capabilities (Hustia, Arifai, Afrilliana, & Novianty, 2021). The model

framework in this study is:

Figure 1. Research Model

Based on the research model used, the hypothesis generated for this study is:

H1 : Profitability (X1) has a significant influence on the stock price (Y).

H2: liquidity (X2) has a significant influence on stock price(Y).

Transformasi data menggunakan SPSS adalah upaya yang bertujuan untuk

Scaling the size of the original data into another format that meets the assumptions of

diverse analysis. There are three reasons why data is transformed according to Ghozali,

(2013), namely: (1) errors in data input, (2) failure to specify the existence of missing

Intan Puspita Rini, Dwi Muhammad Naufal, Muhammad Syahrul Kanji, Tiara Amelia,

Esa Nurjannah

3272 Syntax Idea, Vol. 6, No. 07, Juli 2024

values in computer programs, (3) the existence of extreme values that are not distributed

normally. In this study, the transformation used is Log Natural (LN) in SPSS.

RESULT AND DISCUSSION

Figure 1 Normality Test Results

Source : Results of data processing through SPSS ver.22, 2024

In Figure 1 above, the results of the normality test show that the significance value

(p-value) of 0.000 is less than or below 0.05, so the combined test data shows that the

data is not normally distributed. In Statistics, if the data is not normally distributed, then

data transformation can be carried out to change the scale of the original data size into

another form that meets the underlying assumptions of statistical analysis. The purpose

of SPSS data transformation is to change the size scale of the original data into another

form that allows for more effective statistical analysis (Ghozali, 2013). The results of

the data normality test after removing the outlier and using SPSS version 22 can be seen

in the following table:

Figure 2 Results of the normality test after the transform

Analysis of Factors Affecting the Stock Price of Manufacturing Companies in the Food and

Beverage Sub-Sector Listed on the IDX in 2020-2022

Syntax Idea, Vol. 6, No. 07, Juli 2024 3273

Source : Results of data processing through SPSS ver.22, 2024

In table 2.2, the significance value (p-value) obtained is greater than the

significance level of 0.05, which is 0.200. Therefore, it can be seen that the normality

test data is normally distributed according to the outlier data.

Figure 3 Determination Test Results (R2)

Source : Results of data processing through SPSS ver.22, 2024

Based on figure 3, the adjust R-squared value is obtained at 0.269. This value

shows that 26.9% of the stock price variation (Y) in this study can be explained by the

independent variables of net profit margin (NPM) and current ratio (CR). While the

remaining 73.1% is explained by other variables that are not included in the model

studied.

Figure 4 Partial Test (t-Test) of NPM and CR Variables After Transform

Source : Results of data processing through SPSS ver.22, 2024

Based on Table 2.5, t calculated the NPM variable (X1) has a value of 7.354 and a

significance of 0.000. Since his Significance value was less than 5% alpha, Ha was

accepted and Ho was rejected. This shows that NPM (X1) as an individual has a

significant influence on the stock price. On the other hand, the t calculation variable CR

(X2) has a value of -0.813 and a significance of 0.419. Because the significance

exceeded 5% alpha, Ha was rejected and Ho was accepted. This means that CR (X2)

does not have a significant influence on the stock price individually.

Figure 5 Multiple Linear Regression Test After Transform

Source : Results of data processing through SPSS ver.22, 2024

From the results of the regression analysis, a constant value of 9.345, a regression

coefficient value to profitability (X1) of 0.772, and a liquidity coefficient value (X2) of

-0.159 were obtained. In this study, the equations of the multiple regression model

developed to test hypotheses are:

Intan Puspita Rini, Dwi Muhammad Naufal, Muhammad Syahrul Kanji, Tiara Amelia,

Esa Nurjannah

3274 Syntax Idea, Vol. 6, No. 07, Juli 2024

Information:

α = Constant

β1, β 2 = Regression coefficient of each proxy

Y = Stock price

X1 = Profitability

X2 = Liquidity

e = error

The meaning of the resulting regression equation is:

The value of the α constant of 9.345 shows that when profitability and liquidity

are valued at 0, then the stock price is 9.345.

The value of the profitability regression coefficient is 0.772 with a positive value.

Thus, it can be assumed that every 1 unit increase in profitability will increase the share

price by 0.772 units, with other independent variables considered constant. The value of

the liquidity regression coefficient is -0.159 with a negative value. It can be assumed

that every increase of 1 unit of liquidity will decrease the stock price by -0.159 units,

with other independent variables considered constant.

Profitability as measured by net profit margin has a significant influence on stock

prices. This is evidenced by the results of the t-count test of 7.354 with a significance of

0.000. Based on these facts, it can be concluded that Ha was accepted and Ho was

rejected, meaning that a significant influence of NPM was found partially on the stock

price. This is in accordance with previous research conducted by Widiawati & Ilat,

(2016) that NPM has a significant influence on the stock price of banking companies

listed on the IDX. Nainggolan, (2019)also found something similar in his research. The

NPM ratio indicates a company's ability to generate net profit. When net profit

increases, investors are more willing to buy the stock, causing the stock price to rise.

Liquidity measured by the Current Ratio does not have a significant effect on the

stock price. This is strengthened by the results of the t-count test of -0.813, with a

significance value of 0.419. Based on these facts, it can be concluded that if Ha is

rejected and Ho is accepted, then there is no significant influence of CR on the stock

price partially. The results of this study are in line with previous research conducted by

(Sunardi, Husain, & Kadim, 2020) which revealed that the liquidity represented by the

Curent Ratio did not have a significant influence on the share price of manufacturing

companies in the food and beverage subsector listed on the IDX in the 2020-2022

period. These findings also support previous research that shows that if a company has

good liquidity, then investors do not need to worry about whether the capital invested in

the company will provide profits or not. This is because investors tend to avoid

companies with low liquidity because they will suffer losses. The percentage

contribution of the influence supported by profitability and liquidity variables on the

share price of the food and beverage subsector is 26.9%, and the remaining 73.1% is

Analysis of Factors Affecting the Stock Price of Manufacturing Companies in the Food and

Beverage Sub-Sector Listed on the IDX in 2020-2022

Syntax Idea, Vol. 6, No. 07, Juli 2024 3275

explained by external variables (Amir et al., 2023). This can be seen from the results of

the determination coefficient test with an R-squared value of 0.269.

CONCLUSSION

Based on this study, it was concluded that the profitability variable (X1): the

probability variable measured by the net profit margin proved to have a significant

influence on the stock price, so H1 was accepted. This shows that the higher the NPM,

the more productive the company's performance, so that investors can be more

confident in investing in the company. This conclusion is in accordance with the theory

that profitability has a positive effect on stock prices. Liquidity Variable (X2): H2 was

rejected because it proved that the liquidity variable (X2) measured by the Current Ratio

had no effect on the stock price. This shows that the company's ability to meet its short-

term obligations is not met. Generally, the higher the liquidity ratio, the greater the

company's ability to meet its short-term obligations. This conclusion is different from

previous research which found that liquidity has a negative effect on stock prices

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Esa Nurjannah (2024)

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